Modification

Definition

An agreed change to the terms of a contract.

Purpose

Modifications allow parties to adjust the terms of a contract to accommodate changes in scope, requirements, or conditions. They ensure that the contract remains relevant and enforceable, reflecting any new agreements or understandings between the parties.

Examples of Use

• Construction projects: Changing the scope of work, timeline, or budget based on unforeseen circumstances or client requests.
• Service agreements: Adjusting the terms of a maintenance contract to include additional services.
• Sales contracts: Modifying the delivery schedule or payment terms based on mutual agreement.

Related Terms

• Amendment: A formal change or addition proposed or made to a document or agreement.
• Addendum: An additional document added to the original contract, detailing changes or additions.
• Variation: A change or deviation from the original scope or terms of a contract.

Notes

• Modifications must be agreed upon by all parties involved and documented in writing to be legally binding.
• They can address various aspects of a contract, including scope, price, deadlines, and terms of delivery or performance.
• Properly managing and documenting modifications helps prevent disputes and ensures all parties are aware of and agree to the changes.