Modification

From the Latin Latin: modificare, meaning 'to limit' or 'to adjust.'.

In one sentence

A change to a contract made by the parties after it's already in effect.

Plain English

A modification is when both parties agree to change the terms of an existing contract. It's different from an amendment because modifications are usually smaller, informal adjustments, while amendments are more formal rewrites. Both parties must agree to the modification, and in many cases, new consideration (something of value exchanged) is needed to make the change legally binding.

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Example

A contractor and homeowner agree to extend the project deadline by two weeks and increase the price by $5,000 to cover the extra time. They sign a brief document describing these changes—that's a modification of the original contract.

Used in a sentence

“The two companies signed a modification to their supply agreement to increase the monthly order quantity.”

Related terms

Amendment

A formal, written change to a contract or legal document.

Material Alteration

A significant change to a contract or document that affects its meaning or enforceability.

Consideration

Something of value exchanged by each party to make a contract binding.

Course of Performance

How the parties have actually carried out the contract in practice, which can clarify ambiguous terms.

Contract Interpretation

The process of determining what a contract's words and terms actually mean.

Executed Contract

A contract where both parties have fully performed all their obligations.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.