Certified Professional Contract Manager (CPCM) 2025 – 400 Free Practice Questions to Pass the Exam

A mutual assent modification occurs when both parties to a contract agree to a change in the terms of that contract. This process involves clear and mutual consent from both sides, reflecting the concept of "meeting of the minds" necessary for any valid contract. In this scenario, both parties discuss the proposed change, agree to it, and formally document their acceptance, ensuring that the modification is enforceable.

The choice that describes a change agreed upon by both parties before it occurs captures the essence of mutual assent, which is central to the modification process. It emphasizes that a modification cannot be unilaterally imposed by one party; rather, it requires collaboration and acceptance from both parties involved in the contract.

In contrast, unilateral changes made by one party, informal agreements that lack proper documentation, or actions that terminate contract clauses do not encapsulate the idea of mutual assent. These alternatives could create misunderstandings or potential disputes, as they do not foster the necessary agreement between both contracting parties regarding the new terms.