Reference no: EM131938113

Edgar, an independent contractor, was hired by ABC Enterprises, Inc. (ABC) as a consultant to assist ABC in implementing a new IT system. Edgar agreed to provide consulting advice to ABC 10 hours per week for 6 weeks. In exchange, ABC agreed to pay Edgar $2500 per week, payable in a lump sum of $15,000 at the end of 6 weeks. Edgar and ABC had a valid written contract including these terms.   

After 4 weeks of consulting, Edgar told ABC he needed an additional $500 per week for the remaining 2 weeks to cover expenses. Edgar said ABC needed to pay him a total of $16,000 for the 6 weeks of consulting. ABC orally agreed to amend the contract and pay the additional money.  

At the end of 6 weeks, ABC was very satisfied with Edgar’s consulting work. ABC gave Edgar a check for $15,000 for the consulting but refused to pay the additional $1000 Edgar had requested.

Edgar claims he and ABC had a valid contract to pay him an extra $1000, for a total of $16,000.

What is true about the modified agreement, and the amount owed to Edgar?

A. The modified agreement is enforceable because both parties gave legal consideration for the new contract terms: ABC agreed to pay an extra $1000, Edgar agreed to continue to consult for ABC.

B. The modified agreement is enforceable because, under the UCC rules, all contract modifications are valid if the parties consent.

C. The modified agreement is unenforceable; ABC and Edgar agreed orally to the extra $1000, but there was no written contract covering the new contract terms.

D. The modified agreement is unenforceable because both parties did not give new consideration for the contract modification contract.