Certified Professional Public Buyer (CPPB) Practice Test

After discovering an incorrect address in a contract, what type of modification is most likely needed?

1. Bilateral modification

2. Change order

3. Amendment

4. Unilateral modification

The correct answer is: Amendment

When an incorrect address is identified in a contract, an amendment is typically the most suitable type of modification needed. An amendment is a formal alteration to an existing contract, aimed specifically at correcting errors or clarifying terms within the original agreement. In this case, correcting an inaccurate address directly pertains to the terms of the contract and emphasizes the need for formal documentation to ensure all parties are aware of and agree to the correction. Bilateral modifications usually involve changes that require the agreement of both parties, often for more substantial alterations beyond simple errors. Change orders are specific to construction contracts and involve alterations to the scope of work or cost; they are not applicable in this context. Unilateral modifications can occur without mutual consent but usually pertain to changes that one party is authorized to make, often defined in the contract terms itself. The need for an amendment is primarily about ensuring clarity and accuracy, thereby maintaining the integrity of the contract. It reflects the importance of documenting any changes to official agreements to protect both parties and uphold contractual obligations effectively.