Pre-Existing Duty Rule
Lambert M. SurhoneISBN: 978-6-1329-2065-2;
The pre-existing duty rule is a legal concept relating to when the performance of a legal duty is classified as consideration. Generally, performing a legal duty which is already owed under a contract does not constitute consideration, unless that duty is doubtful or honestly disputed. That is, once a party agrees to do something under a contract, the party cannot change the terms without consideration and expect the new terms to hold. This is expressed as The Legal Duty Rule, and usually occurs in three different ways: 1) PAY LESS: One party has performed their end of the bargain, but then the other party refuses to pay unless the amount owed is lowered. For example, a contractor performs work on a home for $10,000 only to have the homeowner refuse to pay anything unless the contractor agrees to take $8,000 (assuming no breaches of warranty, etc.). The Rule will apply, so the contractor could accept the $8,000 and sue for the $2,000 still...
- OZON.ru 1665