Exercise 10
This exercise is about contract modification.
Marcy is the owner of the Merry Elves Shop. She enters into a written contract to buy 200 Christmas tree ornaments from Bob for delivery October 1. They later modify the agreement in writing, so that Marcy will buy a total of 300 ornaments that will all be delivered October 15. On October 3, Marcy sues Bob, stating that he should have delivered the 200 ornaments to her on October 1 because the contract modification was not valid. She says that there was a lack of additional consideration for the modification.
How should the judge rule?
- A. For Bob, because additional consideration was not necessary.
- A is the right one. The sale of ornaments to a shop that sells ornaments is a sale of goods to a merchant and is therefore governed by the UCC. Under the UCC, additional consideration is not necessary to modify a contract if the modification is sought in good faith.
- B. For Marcy, because additional consideration was necessary in order to modify their contract.
- Sorry, but that's not the correct answer. Please select another.