What does "contract modification" involve?

Contract modification involves altering the existing terms of a contract through mutual agreement between the parties involved. This process recognizes that circumstances may change or that the parties may desire to adjust the terms to better meet their needs or address unforeseen issues. By reaching a mutual agreement, both parties consent to the changes, ensuring that the modification is legally enforceable and that both parties have a shared understanding of the new terms.

Mutual agreement is essential because it preserves the fairness and balance of the contract, fostering cooperation and maintaining the relationship between the parties. This contrasts with other options where unilateral changes or entirely new contracts do not honor the original agreement's spirit or the need for both parties to be on board with significant adjustments. In contract management, clear communication and mutual consent are key to successful modifications.