Modifications Flashcards
C/L Modifications - generally
Terms of a contract may be modified by the parties to the contract. However, consideration generally is necessary to modify a contract (in other words, the modification must have a bargained-for exchange with some element of legal value to the parties). Where a modification would operate to the benefit of only one of the parties, it generally will be unenforceable unless some consideration is being given to the other party. Under the preexisting legal duty rule, the promise to perform or the performance of an existing legal duty will not be sufficient consideration. The modern view permits modification without consideration if it is fair and equitable in view of unanticipated circumstances as of when the contract was made. This usually means that a party encountered difficulties in performing bordering on impracticability.
UCC Modifications - Statute of Frauds
For sale of goods contracts, a modification must be in writing if the contract as modified falls within the Statute of Frauds; i.e., if the contract as modified is for $500 or more.
