Consideration & Preexisting Duty Rule

What are the exceptions to the pre-existing duty rule?

(1) Change in performance; (2) Third party promising to pay; (3) Unforeseen difficulties that would excuse performance; (4) Promisee's duty is contractually owed to a third person

Common law modification

- Modifications must be supported by consideration. - 2 exceptions: (1) rescission + new K; (2) unforeseen difficulties + one party agrees to compensate when difficulties are discovered, if difficulties make performance impracticable

If a creditor agrees to accept a lesser amount in full satisfaction of debt, is the original debt discharged?

- Only when EITHER (1) there is some dispute as to the validity of the debt or amount of debt; OR (2) payment is of a different type than called for under the original contract - This is an accord & satisfaction

What happens if the debtor breaches an accord? What can the creditor recover?

Either the original contract OR the accord agreement

UCC modification

No consideration necessary; only good faith required

NY Past Consideration

Promise in exchange for past consideration is valid if the past/executed consideration is (i) expressed in writing, (ii) is proved to have been given or performed; (iii) would be deemed valid consideration at the time it was given or performed

NY modification

Written agreement to change or modify K is valid if in writing and signed by party against whom it is to be enforced