Plaintiff contracted to excavate a cellar for a stated price. He encountered solid rock and completed his duty under the contract only after defendant orally agreed to give extra compensation. When the excavation was finished, defendant refused to make payment except on the basis of the original terms. Held, defendant, by his later promise, effectively discharged plaintiff from his obligation under the original contract by way of gift. Thus, performance by the plaintiff was consideration for the later promise, thereby creating a new and binding contract. Watkins & Son v. Carrig, (N. H. 1941) 21 A. (2d) 591.
Michigan Law Review,
CONTRACTS - PROMISE TO PERFORM PRE-EXISTING DUTY - GIFTS - CHOSES IN ACTION,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol40/iss5/11