Contracts

In North Dakota, an agreement to do something that is already a legal obligation (pre-existing duty) is generally:

AGood consideration for a new contract
BNot valid consideration for a new contract since no new benefit is being given✓ Correct
CValid consideration if the amount is increased
DValid consideration only for government contracts

Explanation

The pre-existing duty rule states that a promise to do something a party is already legally obligated to do is not valid consideration for a new contract. A new benefit or detriment must be exchanged to support the new promise.

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