Fact Pattern 12-A3

question 66

Multiple Choice

Fact Pattern 12-A3
Cut-Rate Construction Company begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.
-Refer to Fact Pattern 12-A3. If CCC offers, as a reason for the extra $100,000, that ordinary business expenses have increased, the agree?ment is

• A) enforceable as an accord and satisfaction.
• B) enforceable because of unforeseen difficulties.
• C) unenforceable as an illusory promise.
• D) unenforceable due to the preexisting duty rule.

---

Definitions:

Discounted Price

The reduced price of a product or service after applying a discount to its original price.

Irrigation Pump

A device used to move water from a source to a field to aid in the cultivation of crops.

Breakeven

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

Markdown

A reduction from the original or usual price of an item or service.