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The pre-existing duty rule is a corollary to the consideration requirement in contracts. It states that consideration must be bargained for and cannot be something the party was already legally obligated to do. Offering to perform a duty already required by an existing contract, employment term, or law is not enough consideration for a new contract or contract modification. This rule prevents parties from using leverage to force others into contract changes. For instance, in a contractor-homeowner agreement, if the contractor is unhappy with the work, they cannot demand more money without providing additional services.
