Assignment Task:
Introduction:
Read the overview below and complete the activities that follow.
In this activity, you will be determining what constitutes a preexisting duty. Pay special attention to the different exceptions to the preexisting duty rule, specifically unforeseen circumstances, additional work, and the UCC exceptions.
Concept Review:
For a court to enforce a promise, both sides must offer consideration. Sometimes issues arise when a valid consideration is not offered by one party. For example, a promise to do something that you are already obligated to do is not valid consideration, because you have a preexisting duty. There are two parts to the preexisting duty rule. First, performance of a duty you are obligated to do under the law is not good consideration. Moreover, performance of an existing contractual duty is not good consideration either.
Three Cases:
1. An on-duty firefighter arrives at a fire at a warehouse. No one is in the building. The firefighter request $500 to put out the fire.
2. A building contractor enters into a contract to re-roof an old building. During the process, they discover that asbestos is in the building. The contractor requires $5000 more to clear it. Asbestos removal was not part of the original contract.
3. A paint shop enters into a contract to paint a car. Later the paint shop asks the client for an additional $3000 and agrees to add flames to the side of the car. Painting flames to the side of the car was not part of the original contract.
Discussion Requirements:
Read the above three cases. Is there valid consideration in each case? Why? As part of your answer, you must define consideration and the Preexisting Duty Rule. You must also provide a discussion of the relevant exceptions to the Preexisting Duty Rule. Please remember that if the person has a preexisting duty, there is no valid consideration. Finally, please answer the following question: Why does a business law student need to know about the preexisting duty rule?