Prepared for:

Potomac College

MGMT 450 – Contract Modification and Options
Final Exam As a country, the United States has many needs to obtain goods, services, and real estate. These needs are addressed through acquisition by contract. Through purchase or lease, the Federal Government contractually procures supplies, services, and interests in real property. While Federal Government contracting has the same elements as contracting between private parties, i.e. a lawful purpose, competing parties, offer and acceptance, terms of the offer, etc., Federal contracts are regulated to a much higher degree since the funds are public and must be appropriated.
As needs change, so must contracts. Changes to contracts, or modifications, are written, unilateral, or mutually agreed upon (bilateral). A contract modification may introduce or cancel specifications or terms of an existing contract, while leaving the overall objective intact. Unilateral modifications are issued through change orders, and bilateral changes through a supplemental agreement. (Web Finance, Inc., 2013)
There are many reasons why you might want to modify a contract. These would include a contract extension, changes in items or amount, contract duration, changes in payment, price increases or decreases, administrative changes or updates, change in representation of small business size, change or transfer of ownership, and many more. Some written contracts already contain provisions for modifications. For example, if you have a Macy’s credit card, you had to sign a contract with your application. Likely, you authorized Macy’s to make future changes in interest rate.
However, if the method of changes isn’t specified, both contract parties need to confer and identify mutual agreement changes. If you are unable to reach an accord, you'll have to either comply with the original signed