The Code has changed the common law rule regarding modification of a preexisting contract by providing that a contract for the sale of goods can be effectively modified by the parties without new consideration,provided they intend to do so and act in good faith.

Question

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This statement accurately describes the provisions of the UCC (Uniform Commercial Code), which has overridden the common law rule requiring new consideration for modifications to a contract. Under the UCC, modification can occur without new consideration as long as the parties act in good faith and intend to do so.

The Code Has Changed the Common Law Rule Regarding Modification