following item should be added to the end-of-chapter questions specified in the

Question

following item should be added to the end-of-chapter questions specified in the Assignmen lendar for the week this chapter is due. 7B New England Rock Services, Inc., agreed to work as a subcontractor on a sewer project on which Empire Paving, Inc., was the general contractor. For drilling and blasting a certain amount of rock, Rock Services was to be paid $29 per cubic yard or on a time- and-materials basis, whichever was less. From the beginning, Rock Services encountered problems. The primary obstacle was a heavy concentration of water, which, according to the custom in the industry Empire should have controlled but did not. Rock Services was compelled to use more costly and time-consuming methods than anticipated, and it was unable to complete the work on time. The subcontractor asked Empire to pay for the rest of the project on a time-and-materials basis. Empire signed a modification of the original agreement. On completion of the work, Empire refused to pay Rock Services the balance due under the modification. Rock Services filed a suit in a Connecticut state court against Empire. Empire claimed that the modification lacked consideration and was thus not valid and enforceable. Is Empire right? Why or why not?

Explanation / Answer

Whenever any terms and condition of a contract are being altered either by addition or deletion of any provision without altering the overall nature of the existing contract , by the parties is known as modification of a contract .

All the essential elements of the contract entered in the first place must be satisfied at the modification stage as well ,which include one of the most important aspect that is consideration . The changes in the contract can be made freely subject to non violation of law or any policy made for the public.

Till the time there is a consideration present for modification , the contract can be modified . The provision of consideration paid by one party to the contract should be compensated with some performance or non performance by the other party to the contract .

Here the Empire did not control the concentraion of water as required by the custom of the industry . The non performance obligation by the Empire was compensated with high consideration in form of payment based on time and material basis to Rock Service to complete the project . Hence the Empire clain that the modification lacked consideration was thus not valid and enforceable .

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