Talk:Pre-existing duty rule

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The primary purpose of the preexisting duty rule is to prevent what has been referred to as the "hold up game".

a classic example of the "hold-up game" is Alaska Packers' Ass'n v. Domenico, 117 F. 99 (9th Cir. 1902). 21 seamen entered a contract to sail from San Francisco to Alaska to catch some salmon at a predetermined price. When they got there they demanded more money threatening to return to San Franciso. Since the hiring party was not likely to be able to find anyone else to work he assented to the sailor's demands. When they returned to San Francisco he refused to pay and the court determined that since the sailors were under a pre-existing duty to work on the ship under the terms of the original agreement the subsequent agreement (to pay the additional wages) was not supported by any consideration from the sailors. The rule is essentially designed to prevent agreements made through coercion or under duress. --71.237.163.19 05:38, 21 October 2006 (UTC)[reply]