Crucial Exams

Multistate Bar Examination Practice Question

A software company enters into an agreement with a freelance developer. Under the agreement, the developer promises to create a custom application for the company, and in exchange, the company promises to pay the developer $50,000. Before any work begins, the company unilaterally decides that it will pay the developer $45,000 instead. The developer verbally agrees to the lower payment. Later, the company refuses to pay even $45,000, arguing that the agreement is unenforceable. Is the agreement to reduce the original $50,000 payment enforceable?

  • The lack of new consideration in the payment reduction undermines the validity of the modification.

  • The enforceability of oral modifications is restricted by the statute of frauds.

  • The reduction in payment prior to work commencing creates ambiguities regarding the original agreement's enforceability.

  • The developer's agreement to a lower payment indicates acceptance of the modified terms.

Multistate Bar Examination
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