Question 18

A commercial modification may only be made by written agreement between both parties.

A commercial modification requires mutual consent, meaning that any changes to the contract must be agreed upon in writing by both parties involved.

A) Is a term used within the commercial sector and does not apply to Federal/defense contracting

This option is incorrect because the term "commercial modification" is relevant to both commercial and Federal/defense contracting contexts. It does not exclude Federal/defense contracts, as modifications can also occur in those arenas.

B) Can be unilateral, similar to issuing a change order for noncommercial contracts

This option is incorrect since a commercial modification must involve both parties' agreement, making it a bilateral process. Unilateral modifications, which can occur in noncommercial contracts, do not apply in the same way to commercial modifications.

C) May only be written to cancel/terminate the contract

This option is incorrect because a commercial modification does not solely refer to cancellation or termination. Modifications can encompass a broader range of changes to the contract terms, not limited to ending the agreement.

D) May only be made by written agreement between both parties

This option is correct as it accurately reflects that a commercial modification requires a written agreement from both parties to be valid. This ensures that both sides consent to the changes made to the contract.

Conclusion

The correct answer is option D, as it underlines the necessity of mutual consent for any modifications in a commercial contract. Other options fail to recognize the essential nature of written agreements in the modification process, either mischaracterizing the scope of commercial modifications or misunderstanding the procedural requirements.