Question

Joe and Jack have a written contract whereby Joe agrees to sell Jack a plot of land for $100,000. Later, without terminating the first contract, the parties modify the deal so that Joe sells Jack the same plot of land for $125,000. The second agreement is not a contract because:a. the first contract was not terminated.b. there is no consideration for Jack's promise.c. Joe's promise is illusory.d. written contracts for the sale of land cannot be modified.

Answer 1

Answer:

The answer is: B) there is no consideration for Jack's promise.

Explanation:

Consideration (in contract law) is the benefit that must be bargained for between the parties involved. It is the essential reason for the parties entering a contact. Consideration must have some value and is exchanged on the performance or promise from the other party.

Common law rules on contract modifications require some new consideration in order  to modify an existing contract. In this case, only Jack added some new consideration (more money) to the written contract, Joe didn't add anything new.