Contract Questions and Answers

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What is modification?

It is possible for the parties to a contract to modify the terms and conditions of a contract. Any modification to a contract must be done through the consent of the contracting parties. In other words, if there are two parties to a contract, both parties must agree to the modifications or changes to the contract. If there are three parties, then all three parties must agree, etc. Modifications to contracts are common and often result when both parties want the contract to be fulfilled; however, if allowance is not made for a sufficient amount of time for the performance of the contract, or if some other vital provision of the agreement had not been included in the actual contract itself, a modification may occur. Contract modification may result from the direct meetings from the parties or through correspondence between the parties. The item that has been overlooked, which needs to be modified, is brought by one party to the attention of the other party, and both parties agree to the specific terms and conditions of such modifications. Modifications to contracts are generally handled in two ways: (1) either the contract is rewritten to accept the modification; or (2) an ADDENDUM is prepared to the contract and signed by the parties, all of whom acknowledge the fact that the addendum should be a part of the main contract and agree further that the addendum modifies the initial contract. The addendum should always relate back to the initial contract between the parties and should specifically state the purposes for which the addendum is modifying the initial contract.