Question

An agreement to modify a contract is generally _____________________________________________ without some new, independent consideration.

Group of answer choices

a.Enforceable under both the common law and UCC

b.Unenforceable under the common law, but enforceable under the UCC

c.Unenforceable under the UCC, but enforceable under the common law

d.Unenforceable under both the common law and the UCC

Answer 1

Option B is correct.

To modify a contract under common law, party needs a new consideration to the contract, something which has a legal value while in UCC (Uniform Commercial code), no new consideration is needed since it tries to accelerate the contract (or nature of commerce). But UCC assures that parties do modify it in good faith.

Hence, without new consideration, unenforceable under common law but enforceable under the UCC.

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