• Card 39 / 54: ABC Contractors begins building an office building for XYZ Corp., in accordance with their contract with each other. One month later, ABC tells XYZ that ABC will need $2 million more to complete the job, because ordinary business expenses have increased. XYZ, anxious to get the building finished, agrees, but later sues ABC for the $2 million over the original contract price. The additional $2 million term in the contract is
    A) enforceable, because of unforeseen difficulties.
    B) unenforceable, due to the preexisting duty rule.
    C) unenforceable, because $2 million extra is unconscionable
    D) enforceable, because the parties agreed, and the court will not interfere with their contract

    Answer:
    B) unenforceable, due to the preexisting duty rule.

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Business Law MCQ Exam#2 BUS201

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Attribution:  Maureen Shellooe Miller. Open Course Library: BUS&201 Business Law. The Open Course Library. Washington State Board for Community & Technical Colleges, Jul. 2014. http://www.oercommons.org/courses/business-law-bus-201
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