Fact Pattern 12-A2 (Questions A8-A10 Apply)

question 27

Multiple Choice

Fact Pattern 12-A2 (Questions A8-A10 apply)
Cut-Rate Construction Company (CCC) 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-A2.If CCC offers no reason for the extra $100,000,but says only that it will otherwise stop construction,the agreement 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.

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Definitions:

Strategies

Plans, methods, or series of maneuvers for obtaining a specific goal or result.

Union

An organization formed by workers in various trades or professions to protect and advance their rights and interests.

Picket Line

A boundary established by workers on strike, especially at the entrance to the place of work, meant to demonstrate grievance against the employer or to deter others from entering the site.

Negotiations

The process by which parties discuss and arrive at a mutual agreement on matters of common interest.