Question

ABC Siding, Inc. manufactures aluminum siding. ABC enters into a contract to deliver siding to Slippery Siding, Ltd., a retailer of aluminum siding. The written agreement insists that all modifications to the agreement be in writing and signed by both parties. This prohibition against oral modifications is?

1) Enforceable
2) Unenforceable
3) Cannot be determined

Answer 1

In most jurisdictions, a 'no oral modification' clause in a contract is enforceable, meaning changes to the agreement must be in writing and signed by both parties to be considered valid.

Step-by-step explanation:

The prohibition against oral modifications in a contract, such as the one described between ABC Siding, Inc. and Slippery Siding, Ltd., is typically enforceable. Most jurisdictions recognize the concept of a 'no oral modification' clause (NOM clause), which stipulates that any changes to the contract must be in writing and signed by both parties to be valid. While there can be exceptional circumstances where an oral modification may be considered valid despite a NOM clause, generally, courts will enforce the written terms of the agreement as they stand, unless there's evidence of waiver, estoppel, or fraud that might override the clause.