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Vertalis Business Law Glossary

Contracts

Contract Modification

By Tim Nichols

In plain English

A change to an existing agreement's terms, such as scope, price, timing, or responsibilities. Its validity depends on applicable law and any required approval or form. Informal conduct or communications may create disputes over modification or waiver even when the contract calls for signed written amendments.

Types and key distinctions

Change Order

A documented modification to an existing project's scope, price, schedule, or other requirements. The underlying agreement should specify who can approve changes and when approval becomes effective. A change order helps ensure additional requests become agreed obligations rather than disputed assumptions about the original fee.

Waiver

The relinquishment of a known right, which may be express or inferred from conduct under applicable law. Repeatedly accepting performance that differs from the contract can create waiver arguments. A nonwaiver clause can help preserve rights, but its effect still depends on the facts, documents, and law.

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