Genny and Luke Contract for Luke to Build a Home

question 59

Multiple Choice

Genny and Luke contract for Luke to build a home for Genny. Luke promises to build the house for $100,000 but a neighboring forest fire destroys the framing during construction. Luke must reframe the house. Does the preexisting duty rule prevent Luke from enforcing a contract in which he charges additional money to Genny?

• A) Yes, because he has a preexisting duty to build the house and took the chance of an issue during the building process.
• B) Yes, because there are no exceptions to the preexisting duty rule, especially in contracts for the sale of land and houses.
• C) No, Article 2 of the UCC does not allow for enforcement of this contract.
• D) No, because there are unforeseen circumstances (the forest fire) which require additional work (reframing the house).
• E) No, a court would deem that he was under contract and it would unjustly enrich Luke to charge more money to reframe the house.

---

Definitions:

Motives

The reasons or driving forces behind individuals' actions or behavior.

Motivational Principle

A fundamental truth about what motivates individuals to act in certain ways or pursue particular goals.

Performance

The execution of an action or task measured against preset known standards of accuracy, completeness, cost, and speed.

Fortune Magazine

An American international business magazine, published and owned by Time Inc., known for its ranked lists and business news.