Question

A and B have a written contract whereby A agrees to sell B a plot of land for $100,000. Later, without terminating the first contract, the parties modify the deal so that A sells B the same plot of land for $125,000. The second agreement:_______.
A. Is not a contract because there is no consideration for A's promise.

B. Is not a contract because there is no consideration for B's promise.

C. Is not a contract because A's promise is illusory.

D. Is not a contract because written contracts for the sale of land cannot be modified.

Answer 1

Answer:

B) Is not a contract because there is no consideration for B's promise.

Explanation:

In contract law, consideration 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 B added some new consideration (more money) to the written contract, A didn't add anything new.