Does the pre-existing duty rule apply to UCC?
Uniform Commercial Code: The UCC abolished the pre-existing duty rule for contracts for the sale of goods.
What are the exceptions to the preexisting duty rule?
The Pre-Existing Duty Rule – Exceptions A promise to a third party to do the performance that was owed to the second party is valid consideration; even though the performance was owed to the second party in any case. If there is a valid defense to the deal, agreeing not to raise that defense is valid consideration.
What is pre-existing duty for a contract?
Preexisting duty rule is a common-law rule of contract. It says that the rule that performance of an act by which a party is already contractually bound to perform does not constitute valid consideration for a new promise.
Which case provides an example of a court applying the pre-existing duty rule?
In Ward v Byham [1956] an unmarried couple with a child separated after 5 years. The husband promised to pay the mother £1 per week provided she ensured the child was well looked after and happy. The Court held that (although she had an existing duty to care) the promise was enforceable as being in the public interest.
Which purpose of the law is fulfilled by the preexisting duty rule?
As a practical matter, the pre-existing duty rule also maintains the integrity of a contract by preventing parties from using leverage to coerce the other parties into contract modifications.
Does a pre-existing duty defeat consideration?
The rule that performance of, or a promise to perform, a pre- existing duty cannot serve as consideration to bind a promise has been the source of extensive comment.
Which of the following is an example of the preexisting duty rule?
For example, say a plumber agrees to replace all the piping inside a home with copper pipes, but before the project starts, the price of copper skyrockets and it is no longer financially feasible for the plumber to replace the pipe.
What are two exceptions to the rule requiring consideration?
One exception to the rule requiring consideration is promissory estoppel. In a bilateral contract the considerations for each promise is a return promise. In a unilateral contract, the consideration is one partys consideration is the promise and the other partys consideration is the act.
What is the existing legal duty rule?
Existing duty rule: Neither a promise to perform an existing legal duty, nor the performance of an existing legal duty, is regarded as sufficient consideration to support a contract.
What is an example of existing duty?
For example, you cut my hair and I give you RM5 for the cutting service. I give you my car and you give me RM1000. Existing duty is that a promisee is already bound to perform an existing legal duty.
What is an existing private duty?
Existing private duty. the same promise for one contract cannot be used as consideration in another contract. Past consideration. things done in the past cannot be used as consideration in new contracts. Statute of Frauds.
What are the 4 types of consideration?
Common types of consideration include real or personal property, a return promise, some act, or a forbearance.
Why did the UCC change the duty rule?
The Uniform Commercial Code, which applies to contracts for the sale of goods, also substantially modifies the pre-existing duty rule. The UCC modifies the rule because it wants to “assure contracting parties the ability to freely adapt to changing circumstances.”
What is the pre-existing duty rule?
The pre-existing duty rule is an aspect of consideration within the law of contract. Originating in England the concept of consideration has been adopted by other jurisdictions, including the US.
When does the legal duty rule not apply?
The legal duty rule does not apply if the parties mutually agree to change the terms of the contract. For example, the homeowner and contractor could agree to modify their contract to include a new window for the bathroom at an additional cost of $1000.
What is the pre-existing duty rule for salvage?
The pre-existing duty rule plays a part in salvage which is a “voluntary successful service to save maritime property in danger at sea”. The service must be “voluntary”: the salvor must not have an existing duty towards the ship.