Stintson Corp. had agreed to create employee identity cards for McLaughlin Inc. for $60,000. Some of the cards delivered by Stintson Corp. had damages made during the lamination process. McLaughlin Inc. promised Stintson Corp. an additional $20,000 to replace the damaged identity cards, and Stintson Corp. did so. Then McLaughlin Inc. refused to pay Stintson Corp. more than $60,000 for the work. Which of the following statements is true of this situation?

A. Stintson Corp. would still be entitled only to $60,000 because such an act is new consideration that was provided to support the modification.
B. Stintson Corp. is not entitled to any more than $60,000 for its work.
C. Stintson Corp. is entitled to the additional $20,000 as legal value has nothing to do with adequacy of consideration.
D. McLaughlin Inc. owes Stintson Corp. the additional $20,000.


Answer: B

Business

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