Question

George contracted with Bob to have a racing bike modified for him to be delivered on February 20, for a race on February 22. The price for the modification was agreed on as $100. About February 10, George became nervous about the bike being finished on time and went to see Bob. Bob said that he was very busy, but if he really wanted to be sure that it would be finished on time, George would have to pay him an extra $25 so he could pay his employees overtime. George agreed and Bob completed the modifications as requested, on time. How much does George legally owe?

A) only $100 because Bob had an existing duty to modify the bike and the price was settled
B) $25 because past consideration is no consideration
C) $125 because Bob gave consideration for George's promise to pay the additional $25
D) $100 plus whatever it cost for the overtime
E) a reasonable amount only

Answer 1

George legally owes $125 to Bob for the racing bike modifications because Bob accepted George's offer of an additional $25 to ensure the bike would be finished on time, providing new consideration for the amended agreement.

Step-by-step explanation:

In the scenario presented, George legally owes $125 to Bob for the racing bike modifications. Initially, George and Bob entered into a contract for the modification of the bike for $100 with a set delivery date. However, upon expressing concern about the timely completion of the work, George agreed to pay an additional $25 so that Bob could pay for the overtime required to finish on time. This agreement for an additional $25 in exchange for Bob ensuring the bike is ready by the deadline constitutes a new consideration, which is why George owes the higher amount.

The correct answer would be option C: $125 because Bob gave consideration for George's promise to pay the additional $25. This takes into account that although Bob had a pre-existing duty to modify the bike, the new agreement for early completion and the payment for overtime work constitutes a modification of the original contract, supported by fresh consideration.