Why the Preexisting Duty Rule is important to homebuilders? In some cases, Preexisting Duty Rule is a promise to do what one already has a legal duty to do or performance of a duty already owed by contract or law (Angel v. Murray). Law or a previous contract may enforce the preexisting duty rule. For example, a sheriff cannot collect an award for information arising to the capture of a criminal because the sheriff already has the legal duty to capture the criminal through his job of law enforcement. A party cannot form a second contract due to lack of consideration on their previous duty and if a party is already bound to a contract to act upon a previous duty. Preexisting duty rule is enforced to prevent extortion.
             In the interview with Mr. Ruelas, I learned that the preexisting duty rule was a debatable issue. Due to the dispute between Mr. Ruelas and his constructor Mr. Shaw. Mr. Ruelas had solicits bids from contractors but he is not making an offer to a contract; His solicits of bids is treated as invitations to negotiate. Mr. Shaw had a contract with Mr. Ruelas to construct his dream house built according to a specific set of plans and specifications for a bid of $250,000." At this point, Mr. Shawn makes an offer and Mr. Ruelas accepts his offer to construct the dream house for $250,000. A Unilateral contract is formed between Mr. Shawn and Mr. Ruelas. If the offer states that the offeree needs to complete the performance enforced by the contract in order to accept, the contract is a unilateral contract (contracts).
             Secondly, Mr. Ruelas agrees to the $15,000 price hike because Mr. Shawn told him "he will not finish the house unless Ruelas agrees to pay an extra $15,000." Under the preexisting duty rule Mr. Shawn cannot form another contract with Mr. Ruelas because his previous duty does not serve as consideration for a second contract (Angel v. Murray). In Gleims publication
             ...