Contracts and Sales Multistate Bar Practice Exam

Under common law, oral modifications to a contract are generally prohibited when the contract itself includes a clause that specifies that modifications must be in writing. This is known as a "no oral modifications" clause. When such a clause exists, it creates a formal requirement that any changes to the terms of the contract must be documented in writing and signed by the parties involved.

If parties agree to modify a contract verbally in violation of this clause, the modification may not be enforceable in court, resulting in the original terms of the contract remaining in effect. This principle is grounded in the need for certainty and reliability in contractual agreements, as well as the desire to prevent misunderstandings or disputes regarding changes that may arise from informal verbal agreements.

Thus, when it is stated that oral modifications are "never permissible," it reflects the situation where a written modification is a prerequisite for any changes to the contract due to the specific terms laid out in that contract.