What are the two types of contract modifications?

The correct answer identifies the two primary types of contract modifications, which are bilateral and unilateral modifications.

A bilateral modification involves both parties to the contract agreeing to change specific terms or conditions. This mutual agreement is essential, as it indicates that both sides are willing to adjust their obligations or rights under the original contract. Such modifications often arise from negotiations when circumstances change or when it is in the best interest of both parties to amend the agreement.

A unilateral modification, on the other hand, occurs when only one party makes a change to the contract without the consent of the other party. This type of modification typically requires specific contractual authority or justification, such as a clause in the original contract allowing for unilateral changes.

Understanding the distinction between these two types of modifications is crucial for contract management and legal compliance. While both approaches alter the original contract, they do so through different processes and implications, highlighting the importance of how changes to contracts can be negotiated and implemented.

The other options, while they introduce different categorizations, do not accurately capture the fundamental types of contract modifications recognized within contracting practices. Temporary and permanent modifications focus on the duration of the changes rather than the process of modification. Standard and non-standard modifications refer to adherence to norms rather than the nature