Zero,IncAgreed to Build Millie a Storage Building for $8,000

question 34

Multiple Choice

Zero,Inc.agreed to build Millie a storage building for $8,000.After beginning the project,Zero realized that it could not complete the job and make a profit.Zero demanded $9,500 to complete the building.Millie agreed to pay the $9,500.When the project was complete,Millie tendered $8,000 to Zero for the job.If Zero sues Millie for the remaining $1,500,

• A)Zero will win because there was consideration for the additional $1,500.
• B)Zero will win because Millie had a preexisting duty to pay any additional amounts.
• C)Zero will lose because there was no legal consideration to support the additional $1,500.
• D)Zero will lose because the UCC does not require consideration to modify an existing contract.

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Definitions:

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from the total revenue.

Net Profit

The amount of money remaining after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Zone Price

The price based on geographic location or zone of customers.

Shipping Point

A location from which goods are dispatched or shipped to the buyer, often used to determine shipping costs and responsibility for the goods during transit.