Levine v. Blumenthal
- P leased retail space to D. $175/mo for 1st year, $200/mo for 2nd year.
- Before the end of the 1st year, D told P that it was impossible for them to pay the rent increase for 2nd year.
- D said that P allowed them to stay under the old rent until business improved.
- P said that they accepted the old payment, but the remainder had to be paid.
- D left without paying the last month's rent.
- P sued D for last month's rent and for the $25/mo for the 11 months of the second year.
- District court ruled for P.
- P won on appeal, no consideration in modified contract.
- Is consideration present in an orally modified contract brought about by special circumstances?
- Consideration is not present in an orally modified contract brought about by special circumstances.
- Subsequent agreements must have new and independent consideration.
- Since the second contract did not change the terms for the promisor, the promisor was already legally bound to perform the actions prescribed in the second contract. A promise to do what the promisor is already legally bound to do does not provide consideration.
- For the second contract, there must be adequate consideration to support an ordinary contract, i.e. the contract should be examined completely separate from the first contract.