What must be in place for this change to occur?

Robert has a contract with Farmer Ted who provides his manufacturing firm with potatoes. There is a contract in place, signed by both parties that Ted will deliver 2 tonnes of potatoes per week. Due to changes in demand, Robert would like Ted to start providing 3 tonnes of potatoes every three weeks.

What must be in place for this change to occur?
A . a variation clause and a new liquidated damage fee
B. a variation clause and a signed agreement by both parties
C. a notification of change and adequate compensation
D. a notification of change and indemnity

View Answer

Answer: B

Explanation:

A variation clause and signed agreement by both parties is required to make the change.

See p.16-17 for more information on contract variations. Note a ‘notification of change’ isn’t valid unless it’s accepted by the other party- so it’s a good idea for both parties to sign to say they agree to the change.