Under the UCC, when must a contract modification be in writing?

Study for the MBE Critical Pass Test. Enhance your knowledge with flashcards and multiple choice questions. Prepare thoroughly for your exam with detailed hints and explanations.

Multiple Choice

Under the UCC, when must a contract modification be in writing?

Under the UCC, you don’t need new consideration for a contract modification to be binding, and writing isn’t required just because there’s a modification. The writing requirement kicks in only if the contract as modified would be within the Statute of Frauds for the sale of goods. For goods, the Statute of Frauds requires a written contract when the price is $500 or more. So you look at the contract after the modification: if the modification pushes the total value over $500 (or otherwise brings the modified agreement under the Statute of Frauds), then a writing is required for the modification to be enforceable. If the modification leaves the contract under $500, no writing is necessary. In short, a modification must be in writing only if the modification brings the contract within the Statute of Frauds.

Under the UCC, you don’t need new consideration for a contract modification to be binding, and writing isn’t required just because there’s a modification. The writing requirement kicks in only if the contract as modified would be within the Statute of Frauds for the sale of goods.

For goods, the Statute of Frauds requires a written contract when the price is $500 or more. So you look at the contract after the modification: if the modification pushes the total value over $500 (or otherwise brings the modified agreement under the Statute of Frauds), then a writing is required for the modification to be enforceable. If the modification leaves the contract under $500, no writing is necessary.

In short, a modification must be in writing only if the modification brings the contract within the Statute of Frauds.

More practice questions