Under the Common Law, a Modification of a Preexisting Contract

question 61

True/False

Under the common law, a modification of a preexisting contract must be supported by mutual consideration; under the Code, a contract can be modified without new consideration.

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Definitions:

Perpetuity

A type of annuity that pays a fixed amount to an individual indefinitely.

Scholarship

Financial support awarded to a student, based on academic achievement or other criteria, to help pay for education expenses.

Compounded

Interest calculated on the initial principal, which includes all of the accumulated interest from previous periods.

Post-secondary

Relating to education after high school, including college, university, and vocational or technical training.