(3) If the contract is amended as part of its provisions, the requirements for the status of fraud section of this section (section 2-201) must be met. A contract to sell goods is the responsibility of the UCC; Therefore, the parties do not need a new thought on the modification of a contract. However, the party that is trying to amend the treaty must do so in good faith. Imagine a bride having a written contract with a bakery. The bride ordered a cake for 1000 dollars to be delivered to her wedding party on the day of the wedding. The baker calls the bride an hour before the wedding and tells her he can`t deliver the cake for less than 2000 dollars. The bride, visibly distressed, agrees to pay the $2,000. The baker delivers the cake and sends an invoice to the bride for $2,000. The bride gives 1000 $US to the baker, the price of the original contract. The baker complains about $1000.
The court will not apply the contract under the amended conditions because the baker attempted to amend the contract in bad faith. The UCC applies to contracts for the sale of goods to a distributor or through a distributor. According to the UCC, additional consideration for amending a written contract is not required as long as the amendment is made in good faith. If the contract is not intended for the sale of goods to a distributor or a dealer, additional consideration is required to change the terms of the contract. For example, Marge entered into a contract to sell his car to Paul. Both want to change certain contractual terms. Since the UCC does not apply to the sale of a car between private parties, new consideration must be exchanged before the contract can be amended. A business owner can sign a contract and later find that he or she is unable to comply with the terms of the contract. If a small contractor is in this situation, they can avoid taking legal action by not violating the contract. Instead of violating the contract, a contractor may try to change the contract by changing its terms. If the contract relates to the sale of property (i.e.
personal property) in a commercial environment, the New Mexico Code of Trade (UCC) applies. The UCC of New Mexico is under NMSA -55-1-101 at -725. In general, the UCC applies to the sale of products involving a trader. The examples below illustrate when the UCC refers to a sales contract. In common law, a party needs a new thought — something of legal value — to change a contract. The party receives further reflections by negotiating with the other party to change the counterparty on both sides of the contract. There are two exceptions to the general rule. If the parties encounter unforeseen difficulties or if one of the parties changes its position based on the amended promise, the parties do not need further consideration to legally change the contract. In some cases, with respect to contracts for the sale of goods, the UCC approach differs from the treatment of contracts that are not intended for the sale of goods. For example, the requirements for a contract modification under the UCC differ from others (see below) and the limitation period for contracts for the sale of goods is shorter than the limitation period for other contracts (see discussion above on the elements of the contract). A service contract is a common law matter; As a result, both parties to a service contract generally need further consideration to amend the contract.
Take this example: a college`s activity committee contracts a famous comedian to do a home show for $5,000. The comedian would later call the activity committee to claim $7,000 instead of $5,000. The members of the activity committee cannot change the contract in this way, so they negotiate with the comedian. They tell him that they can change the contract if he agrees to sign autographs an hour after the show.