Tuesday, July 15, 2008

Bar Exam Tip: Modification of Existing Contract

You first have to figure out if the contract is governed by common law or the UCC.

Under common law, new consideration is required to modify an existing contract. The preexisting duty rule bars modification without new and adequate consideration.

Under the UCC (goods) no considersation is required to modify a contract as long as the parties to the contract are acting in good faith.

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