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

The actions of one or both parties to a contract that may lead to a change in the terms or performance requirements of that contract are best described as "contract modification." This term encompasses a formal process where changes to the contract’s terms, prices, or conditions are agreed upon by both parties, ensuring that any amendments are legally recognized.

While the conduct of the parties might imply actions that could influence the execution or understanding of the contract, it does not specifically capture the formal nature of changes that may alter the contract's terms. In contrast, "constructive change" refers to a situation where a change is implied or necessitated by actions taken by one party, which may not be formally documented as a modification. Additionally, "default" pertains to a failure to fulfill contractual obligations, which is not related to making changes to the contract itself.

Understanding the distinctions between these terms is crucial in contract management, as each has specific implications for how a contract is managed and enforced.