Under the UCC, what is true about modifications of contracts?

Under the Uniform Commercial Code (UCC), modifications to contracts for the sale of goods do not require additional consideration if they are made in good faith. This principle recognizes that the nature of commercial transactions often necessitates flexibility; thus, allowing for modifications without consideration promotes fairness and adaptability in business dealings. Good faith is a key aspect here, meaning that the modification is not intended to undermine the integrity of the original agreement.

The requirement for good faith means that the parties involved must act honestly and sincerely in the course of their negotiations and contract modifications. If both parties agree to a modification based on mutual circumstances or changes in the market, this can facilitate smoother transactions and accommodate evolving business needs without the burden of having to provide fresh consideration.

In contrast, modifications under common law typically require consideration, which is a notable distinction that highlights the UCC's more lenient approach. This flexibility encourages parties to respond pragmatically to changed conditions or performance issues that may arise during the course of fulfilling a contract.