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Unlike the UCC, the CISG requires new consideration to modify a contract.

a. True
b. False

1 Answer

7 votes

Final answer:

The statement is false. The CISG allows contract modifications without new consideration, just as the UCC does, provided the agreement is made in good faith.

Step-by-step explanation:

The statement that unlike the UCC, the CISG requires new consideration to modify a contract is false. Under the United Nations Convention on Contracts for the International Sale of Goods (CISG), which governs international sale of goods contracts, a contract may be modified or terminated by the mere agreement of the parties without the need for additional consideration. This differs from the common law requirement of new consideration for the modification of a contract. Under the Uniform Commercial Code (UCC), which governs commercial transactions in the United States, consideration is not needed to modify a contract as long as the modification is made in good faith.

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