Be mechanicalStep1. it is CL , not UCC, since it was K for services Strep2. Eliminate wrong answers: What is the maximum amount to which Structo is entitled? (A) $500,000 because there was no consideration for Bailey's promise to pay the additional $20,000. Well, it is true so far, cause there was no consideration, give it +/- (B) $500,000 because Bailey promise to pay the additional $20,000 was exacted under duress. Nope, builder did nothing to cause duress, Indeed, did builder plant the rock to jack up the price, No, he did not. (C) $520,000 because the modificatiob was fair and was made in light of circumstances not anticipated by the parties when the original contract was made. Look for words " not anticipated". Wrong, builder is pro he should have anticipated and allocated risk. those rocks are in all the time. it was not stray stone from the moon. Builder is guilty of poor buz judgment , hence just swallow the loss. All he had to do is make a K with contingency built inK= $500 for normal ground or K= $520 if we encounter rocks, etc (D) $520,000 provided that the reasonable value of Structo's total performance was that much or more.Bunch of nonsense, exam writer tries to get you into "fairness" , lets be fair. Yah, right, but not on MBE. Typical answer for suckers " reasonable value...much or more" Bunch of crapLooks like under CL builder screwed up and owner does not have to pay new K price b/c of want of considerationGo with "A" answer
Indeed, paragraph cited deals with bargains which are without consideration only because of the rule that performance of a legal duty to the promisor is not consideration. See §73.
The rule of §73 finds its modern justification in cases of promises made by mistake or induced by unfair pressure. "fair and equitable" requires an objectively demonstrable reason for seeking a modification. Compare http://www.lexinter.net/LOTWVers4/m...waiver.htm">Uniform Commercial Code §2-209 Comment. The reason for modification must rest in circumstances not "anticipated" as part of the context in which the contract was made, but a frustrating event may be unanticipated for this purpose if it was not adequately covered, even though it was foreseen as a remote possibility.
Illustrations:
1. By a written contract A agrees to excavate a cellar for B for a stated price. Solid rock is unexpectedly encountered and A so notifies B. A and B then orally agree that A will remove the rock at a unit price which is reasonable but nine times that used in computing the original price, and A completes the job. B is bound to pay the increased amount.
Is it fair and equitable in the hypo with original price 500K ---> 520K????
5% of K price.
So I hire a remodel contractor for $20K , he rips my kitchen and comes back to me asking for $21K b/c piping price miscalculation, I agree, and I am bound?
I will rather show him Rest2, and the max of the recovery would be $20K.
because if we follow fair and equitable, he would be jacking up the price every day.
2. A contracts with B to supply for $300 a laundry chute for a building B has contracted to build for the Government for $150,000. Later A discovers that he made an error as to the type of material to be used and should have bid $1,200. A offers to supply the chute for $1000, eliminating overhead and profit. After ascertaining that other suppliers would charge more, B agrees. The new agreement is binding.
3. A is employed by B as a designer of coats at $90 a week for a year beginning November 1 under a written contract executed September 1. A is offered $115 a week by another employer and so informs B. A and B then agree that A will be paid $100 a week and in October execute a new written contract to that effect, simultaneously tearing up the prior contract. The new contract is binding.
4. A contracts to manufacture and sell to B 2,000 steel roofs for corn cribs at $60. Before A begins manufacture a threat of a nationwide steel strike raises the cost of steel about $10 per roof, and A and B agree orally to increase the price to $70 per roof. A thereafter manufactures and delivers 1700 of the roofs, and B pays for 1,500 of them at the increased price without protest, increasing the selling price of the corn cribs by $10. The new agreement is binding.
5. A contracts to manufacture and sell to B 100,000 castings for lawn mowers at 50 cents each. After partial delivery and after B has contracted to sell a substantial number of lawn mowers at a fixed price, A notifies B that increased metal costs require that the price be increased to 75 cents.
Substitute castings are available at 55 cents, but only after several months delay. B protests but is forced to agree to the new price to keep its plant in operation. The modification is not binding.