Crucial Exams

Multistate Bar Examination Practice Question

A homeowner agrees to hire a contractor to remodel their kitchen for $20,000. After work begins, the contractor requests an additional $5,000, claiming that construction costs have risen unexpectedly. The homeowner orally agrees to the increase. Later, the contractor completes the work and demands payment of $25,000. The homeowner refuses to pay the extra $5,000, arguing the modification is unenforceable. Is the contractor entitled to the additional payment?

  • No, because the contractor offered no new consideration to support the modification.

  • No, because modifications to contracts must be in writing to be enforceable.

  • Yes, because the homeowner agreed to the modification orally.

  • Yes, because unexpected cost increases make the modification enforceable.

Multistate Bar Examination
Contracts
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