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Exercise 10

This exercise is about contract modification.

Contracts Ex. 10Marcy 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.