Bilateral modifications can also be used to definitize what type of contracts?

Bilateral modifications are contractual adjustments that require the agreement of both parties involved in a contract. They are particularly useful in the context of definitive agreements where the specific terms and conditions need to be established in a formal manner.

Regarding letter contracts, they are often used when there is an urgent need for supplies or services, and the parties agree on certain terms while deferring additional negotiations for later. Because letter contracts are typically used as a temporary solution, they commonly remain in their preliminary form until a more comprehensive agreement is finalized. The process of definitization transforms these initial agreements into binding contracts with clearly defined obligations, price structures, and performance details.

In this way, bilateral modifications are an essential mechanism for moving from a letter contract to a definitive contract that provides clarity and enforceability regarding the obligations of the parties involved. This process is particularly beneficial because it helps ensure that all sides are in agreement on the finalized terms before the contract is fully executed.

On the other hand, while the other types of contracts mentioned—fixed-price, cost-reimbursement, and time and material contracts—can also undergo modifications, they typically do not originate in the same preliminary form as letter contracts do. Once established, these contracts have a more definitive structure that may not lend itself