Which statement accurately describes contract modification under the modern UCC framework?

Which statement accurately describes contract modification under the modern UCC framework?

• A. It always requires new consideration from both parties.
• B. It requires new consideration unless the modification is in writing for commercial contracts.
• C. It does not require new consideration if the modification is made in good faith.
• D. Modification must be supported by a separate contract to be enforceable.

Answer: (C)

Under the UCC, changing the terms of a contract for goods doesn’t require giving something new in return. If both sides agree to the modification in good faith, the modification is binding even though there’s no new consideration. The only time the modification needs more formal attention is if the altered contract, as modified, falls under the Statute of Frauds—that is, it would have to be in writing to be enforceable. So the best description is that no new consideration is required for a modified contract when the change is made in good faith. The other statements misstate the rule: new consideration isn’t normally required, a separate new contract isn’t necessary, and writing is only needed to satisfy the Statute of Frauds, not simply because a modification exists.

Under the UCC, changing the terms of a contract for goods doesn’t require giving something new in return. If both sides agree to the modification in good faith, the modification is binding even though there’s no new consideration. The only time the modification needs more formal attention is if the altered contract, as modified, falls under the Statute of Frauds—that is, it would have to be in writing to be enforceable. So the best description is that no new consideration is required for a modified contract when the change is made in good faith. The other statements misstate the rule: new consideration isn’t normally required, a separate new contract isn’t necessary, and writing is only needed to satisfy the Statute of Frauds, not simply because a modification exists.