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Contractor and Owner contracted for Contractor to build a house for Owner for $150,000 to be completed by December 24. Later, without terminating the first contract, Contractor and Owner agreed to change their agreement by writing and signing an addendum to the original contract so that Owner will now pay $175,000 for the house to be built. In return, Contractor promised to build exactly the same house, but to complete it 2 weeks earlier - by December 10.
Assuming that all other elements of the contract are lawful and present in this situation, this second addendum contract:
a. Is not binding because it does not have a liquidated damages clause.
b. Is not binding because Contractor is merely promising to perform a pre-existing legal duty to build the house.
c. Is not binding because Contractor is not giving adequate consideration by merely promising to complete the house 2 weeks earlier compared to Owner’s paying an additional $25,000.
d. Is a validly modified addendum that is a binding contract.
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