Contracts & ExecutionQuestion 869 of 1605

A 'no oral modification' clause states that the contract may be changed only by a signed writing. Its practical purpose is to:

a.Waive all warranties
b.Automatically increase the price
c.Prevent the contract from ever being modified under any circumstances
d.Discourage informal, disputed changes by requiring modifications to be documented in a signed writing

Explanation

A no-oral-modification clause aims to prevent disputes over informal changes by requiring that any modification be made in a signed writing, promoting clarity and reliable records, an approach that aligns with sound change-order practice. Such clauses can still sometimes be overcome by clear conduct or waiver, so they do not make a contract absolutely unchangeable. They do not raise the price or eliminate warranties; they govern how changes must be documented.

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Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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