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MQDULE 23 CONTRACTS
the
incorrect because the fact that Fox failed to return Summers'
letter is irrelevant to the formation of a binding contract.
Fox's reply constitutes a counteroffer as Fox did not intend
to accept Summers' original offer. Answer (c) is incorrect
because Summers' offer was rejected by Fox's counteroffer.
Answer (d) is incorrect because with rare exceptions, silence
does not constitute acceptance.
C.3. Consideration
10. (c) Both Zake and Wick had a contract that was
binding for five years. For them to modify this contract,
both of them must give new consideration under common
law rules which apply to employment contracts such as this
one. When Wick agreed to the raise, only Wick gave new
consideration in the form of $20,000 additional each year.
Zake did not give new consideration because he would per-
form in the last three years as originally agreed. Answers (a)
and (b) are incorrect because Zake did not give new consid-
eration whether or not the raise was in writing. Answer (d)
is incorrect because duress needed to make a contract void-
able or void requires more than "some pressure."
C.S. Legality