This section contains the nature of the case and procedural background.

Bauman-Basch, Inc. (D) hired Schwartzreich (P) as a clothes designer for $90 per week. P received an offer from a third party to work as a clothes designer for $110 per week. P informed D that he intended to leave unless D gave him a raise. D agreed to pay P $100 per week under a new contract. D subsequently refused to pay P the higher wages. P was discharged and sued on the contract. D's defense was that there was no consideration for the new contract because P was already obligated to perform the same duties at a lower price. P claimed that D raised his wages to $100 per week after P merely informed D that he had another job offer. The trial judge instructed the jury that if P and D both revoked the contract, then P could recover damages for a breach of the $100 per week contract. P got the jury verdict, and the judge set it aside. P appealed. The appeal court upheld the instruction and reinstated the jury verdict. D then appealed.

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