What is a material alteration of a contract?

A material alteration of a contract is a change to the terms of a contract that fundamentally changes the original agreement. This type of alteration is typically not minor and thus must be agreed upon by all affected parties. In Washington, material alterations of contracts are viewed as a breach of contract and can result in legal penalties. To determine if an alteration is material, courts will look at the change in light of the overall agreement. If the change alters the fundamental terms of the contract and alters the rights and obligations of the parties, then it is likely a material alteration. For example, if a contract specifies a certain time frame for performance and then one of the parties unilaterally changes that time frame, then it can be considered a material alteration. Material alterations may also be created by a clear mistake in the contract, such as an ambiguous definition or a mathematical error. In these cases, the parties may need to go back to the original parties and discuss how to fix the error. If a resolution cannot be agreed upon, then the contract may need to be rewritten. In Washington, any material alteration of a contract should be in writing and agreed to by all parties. Oral agreements may not be enough to constitute a material alteration, and an alteration that is not in writing may not be legally enforceable. If a material alteration is not agreed to by all parties, then the original terms and conditions of the contract remain in effect.

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