Question

Which of the following is true of preexisting contractual duties and their modification under the UCC?

a. Any modification must be supported by new consideration.
b. Modifications are not enforceable without the approval of a court.
c. Modifications must always be in writing.

Answer 1

Under the UCC, preexisting contractual duties can be modified without new consideration and without requiring court approval.

Step-by-step explanation:

Under the Uniform Commercial Code (UCC), modifications to preexisting contractual duties do not always require new consideration to be enforceable. Option a is false. While new consideration can strengthen the enforceability of a modification, the UCC allows modifications to be binding even without new consideration.

Option b is also false. Modifications to preexisting contractual duties do not require the approval of a court to be enforceable under the UCC. As long as the parties mutually agree to modify the contract, the modification can be valid.

Option c is partially true. Although not all modifications must be in writing under the UCC, there is a requirement for a modification to be in writing in certain situations to be enforceable. For example, when modifying the sale of goods contract involving a value of $500 or more, the modification must be in writing to be enforceable. Therefore, option c is not always true.