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Today were going to explore something called the pre-existing duty rule by looking at a case called Alaska Packers Association vs Garmin echo which was decided by the Ninth Circuit in 1902 the Alaska Packers Association hired a group of sailors and salmon fishing people including the named apple Domenico for a fishing expedition Alaska Packers contracted to pay each of the workers 50 or 60 for the season, but after the expedition began the workers stopped work and demanded a pay increase to 100 for the season because the location was remote and the season was short Alaska Packers superintendent was unable to obtain replacement workers and so conceded to the demands when the work was completed and the workers returned from the expedition Alaska Packers refused to honor the contractual modification and the worker sued the trial court found for the plaintiff workers and the instant court reversed, so the central issue is this was the contractual modification supported by consideration the Ninth Circuit held that the contractual modification lacked consideration the court observed that the workers agreed in writing for certain stated compensation to render their services to the appellant in remote waters where the season for conducting fishing operations is extremely short and which and in which Enterprise the appellant has a large amount of money invested in fact it was a hundred and fifty thousand dollars invested in 1900 that was a lot of money the workers then waited until it was impossible for the appellant to secure other men in their places and without any valid cause absolutely refused to continue the services they were under contract to perform unless the appellant would consent to pay them more money the court concluded that Alaska Packers and to the workers demands was without consideration for the reason that it was based solely upon the libelous agreement to render the exact services and none other that they were already under contract to render by the way the plaintiffs are called libelous because this is an admiralty case this is an example of what is known today as the pre-existing duty rule the pre-existing duty rule says that a pre-existing Duty cannot be used as consideration for a contractual modification under the pre-existing Duty rule you can't promise not to kill the president for 1000 because you already have a duty not to kill the president as applied to contractual modifications the pre-existing duty rule says that modifications to a contract unsupported by additional consideration are unenforceable in other words if a party promises to do something that he is already legally bound to do his promise will not count as consideration to support a new contract with a higher price the law will regard the promise as a nude impact a naked promise unclothed in consideration so here's a pop quiz consideration is normally regarded as something which is bargained for and given exchange for a promise was the additional pay bargained...
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