A landscaping company entered into a written agreement to maintain a homeowner's property, including mowing the lawn, trimming bushes, and weeding flowerbeds, for $500 per month. Two months into the agreement, the homeowner asked the company to include planting seasonal flowers four times a year. The company agreed and raised the fee to $650 per month, which the homeowner accepted orally. When the homeowner later refused to pay the increased rate, arguing that the contract modification was unenforceable, which of the following principles will determine the enforceability of the modified agreement?
The modified agreement is enforceable because the landscaping company provided new consideration by agreeing to additional services.
The modified agreement is enforceable because contracts with an ongoing performance can be modified without additional consideration.
The modified agreement is unenforceable because the original contract was in writing, and modifications must also be in writing to be valid.
The modified agreement is unenforceable because the homeowner’s promise to pay an increased fee was not supported by any consideration.
A contract modification generally requires additional consideration to be enforceable. In this case, the landscaping company agreed to provide an additional service—planting seasonal flowers—which constitutes new consideration in exchange for the increased fee. Absent any statutory requirement for the modification to be in writing, oral modifications that are supported by consideration are legally valid. In contrast, answers suggesting that a written contract cannot be modified orally are incorrect, as most contracts, unless prohibited by specific statutes, are modifiable by mutual agreement, even orally.
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