Question

Johnson Bakery agrees to supply Higgen’s Restaurant with all the bread that it requires for one year. When a shortage causes the price of wheat to rise sharply, Johnson can continue supplying bread only at a much higher price. The parties agree to modify the contract so that the buyer will pay a higher price. The change is
a. enforceable as long a the parties voluntarily agreed to the modification.

b. uneforceable due to the preexisting duty rule

c. unenforceable because Johnson is taking advantage of a shortage to boost profits

d. unenforceable because a valid contract already exists

Answer 1

Answer:

The correct answer to the following question will be "Option A".

Explanation:

• It is indeed a legally enforceable arrangement among two or even more, individuals, where it would be usually made up through one party, can make a bid, as well as the other party signaling approval. The parties 'agreements describe there rights & obligations.
• The parties have agreed to amend the deal to make the seller charge a larger amount. The move is enforceable however soon as when the parties willingly consent to either the amendment.

The other solutions have no relation with the specified scenario. So choice A is the right solution to that.