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The pre-existing duty rule is a corollary of the consideration requirement in contracts. For consideration to be valid, it must be something that was bargained for and cannot be a performance that was already legally obligated. This rule prevents parties from using leverage to coerce contract modifications and ensures the integrity of the agreement. For example, if a contractor and homeowner have a contract for renovations and the contractor later demands more money, this would not be valid consideration under the pre-existing duty rule.