Under The Ucc An Agreement Modifying A Contract Needs No Consideration To Be Binding

The UZK allows a party to clear a claim or right resulting from an alleged infringement of the other party without consideration. This objective is achieved by granting the other party a waiver signed in writingAn informed choice, in which one waives the right to appeal otherwise available. or waiverA formal refusal of something, such as a contract. Single Commercial Code, §1-107. This provision applies to any contract submitted to the UZK and is not limited to the sales provisions provided for in Article 2. Section 1-207 UZK allows a party to benefit from a reservation of rightsserving a statement intentionally serving all or part of the legal rights to warn others of those rights. in the performance of a contract. This section raises a difficult question when a debtor makes a full payment cheque to pay a disputed debt. As noted in this chapter, since, under the Common Law, the creditor`s acceptance of a cheque in full payment constitutes an agreement and satisfaction for the payment of a disputed debt, the creditor cannot recover the amount beyond the cheque.

But what happens if, when cashing the cheque, the creditor reserves the right (in accordance with section 1-207) to take legal action for an amount that goes beyond what the debtor offers? Courts are divided on this issue: with respect to the sale of goods subject to the CSCE, some courts allow the creditor to sue the outstanding debt, although the check is labeled «paid in full» and others are not. It is not by agreement and satisfaction that the situation in which a party has a pre-existing duty and a benefit is offered to him to perform it is not satisfactory. If the only consideration offered to the promiser is an act or promise to act for the fulfillment of an existing obligation, there is no valid contract. As Denney v. Reppert (section 11.4.2 «Consideration: pre-existing commitment»), it is clear that the promisor will not suffer a legal disadvantage if he promises to do what he is already required to do. If a person is promised a benefit not to do what is already forbidden to him, there is no quid pro quo. David is sixteen years old; His uncle promises him $50 if he doesn`t smoke. The promise is unenforceable: legally, David must already give up smoking, so he promised not to give up anything over which he had a legal right. As noted above, the difficulty arises when it is not known whether a person has an existing obligation or whether unforeseen difficulties have arisen to justify the recognition that the parties have modified the contract or entered into a novation.

What if Peter insists on an extra payment for him to remove a wheelbarrow full of quicksand from the excavation? Admittedly, this is not enough «unforeseen difficulty». How many quicksands? Unforeseen difficulty Problems in the performance of a contract are so great that the assumption that the contract will be modified is justified. . . .