R2d § 73

Performance of Legal Duty

R2d § 73 Performance of Legal Duty
Performance of a legal duty owed to a promisor which is neither doubtful nor the subject of honest dispute is not consideration; but a similar performance is consideration if it differs from what was required by the duty in a way which reflects more than a pretense of bargain.

Professor's notes

Element: performance of a legal duty owed to a promisor which is neither doubtful nor the subject of honest dispute is not consideration; but a similar performance is consideration if it differs from what was required in a way which reflects more than a pretense of bargain.

This is the pre-existing duty rule.

Alaska Packers v. Domenico is the working case: fishermen mid-voyage demanding more wages had a pre-existing duty to fish. No consideration; modification void.

Common misunderstanding: students think the rule polices fairness. It does not. It is a gezerah-style prophylactic against coerced modifications. UCC § 2-209(1) eliminates the rule for goods; R2d § 89 narrows it for fair-and-equitable modifications under changed circumstances. Modern doctrine has eroded the rule substantially but not killed it.

Cases that operationalize this rule

Text

R2d § 73. Performance of Legal Duty.

Performance of a legal duty owed to a promisor which is neither doubtful nor the subject of honest dispute is not consideration; but a similar performance is consideration if it differs from what was required by the duty in a way which reflects more than a pretense of bargain.