What Is A Contract Modification Agreement

A business owner can sign a contract and later find that he or she is unable to comply with the terms of the contract. If a small contractor is in this situation, they can avoid taking legal action by not violating the contract. Instead of violating the contract, a contractor may try to change the contract by changing its terms. If all parties accept the amendment and receive these changes in writing, the changes to the contract are enforceable in court. Oral changes are generally unworkable. As a general rule, a treaty change should be made in writing if the amendment changes the value of the contract of $500 or more. A contract to sell goods is the responsibility of the UCC; Therefore, the parties do not need a new thought on the modification of a contract. However, the party that is trying to amend the treaty must do so in good faith. Imagine a bride having a written contract with a bakery. The bride ordered a cake for 1000 dollars to be delivered to her wedding party on the day of the wedding. The baker calls the bride an hour before the wedding and tells her he can`t deliver the cake for less than 2000 dollars. The bride, visibly distressed, agrees to pay the $2,000.

The baker delivers the cake and sends an invoice to the bride for $2,000. The bride gives 1000 $US to the baker, the price of the original contract. The baker complains about $1000. The court will not apply the contract under the amended conditions because the baker attempted to amend the contract in bad faith. c. other agreements reached by the parties to amend the terms of the contract; Like any non-trader, a trader is free to refuse a proposed amendment, but a trader may waive the right to refuse an amendment by not objecting to it. For example, if a subcontractor-working electrician informs the general contractor that electrical work will be more expensive than expected, the general contractor may be required to bear the additional costs if he does not object before the electrician begins the work. There must be a legitimate economic reason for such a treaty change and the amendment must be appropriate in light of standards within the sector concerned. Courts are free to remove changes made by coercion or bad faith. Unlike before the contract was signed, it can be difficult to change a contract after it is signed by both parties.