Hector and Martha Homeowner entered into a contract for construction of an addition to their home with New Rooms, LLC. After the work had begun, New Rooms, LLC informs the Homeowners that the price of materials has increased and in order to complete the work, they will need an additional $3,000. Homeowners agree, provided they are given the opportunity to change the carpeting to wood floors. New Homes says they will install wood floors, but the price will be $3,500 higher than the contract price. Homeowners agree, but then later refuse to pay the additional $3,500. Was there sufficient consideration to support the modification of the original contract?
What will be an ideal response?
The change in the contract from carpeting to wood floors is sufficient new consideration to support the promise to pay the additional $3500. Had that new contractual obligation not been added, an agreement to pay an additional $3000 would not have been enforceable against them because no consideration was given to support that promise. Performance of past contractual obligations is not an adequate consideration. Courts will rarely look at the adequacy of the consideration given. Here, there seems to be negotiation and a new agreement.
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