Question
5. Annie and Bill sign a contract saying that Bill will rent Annie's extra room for $500 per month, beginning next week and running through
5. Annie and Bill sign a contract saying that Bill will rent Annie's extra room for $500 per month, beginning next week and running through the summer. The day before he's set to move in, Bill calls Annie and tells her that he's just gotten another offer to rent a bigger room for the same period for only $400 per month. Worried that she'll lose the rental income that she expected, Annie agrees to rip up the old agreement and the pair sign a new contract for the same term, requiring Bill to pay only $350 per month. Is the new contract enforceable?
A. Yes, under the reasoning of Batsakis v. Demotsis.
B. No, under the reasoning of Alaska Packers.
C. No, under the reasoning of the brother-in-law's promise to let his deceased brother's wife and family live in his extra house.
D. Yes, the pair created a new contract with the same consideration.
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