Does the contract modify the scope or price (or both) of an existing agreement?

If the contract modifies the scope, price or both of an existing agreement and it has been approved then it will be considered a contract modification. Approval of the modification can be written, oral or implied by the customers customary business practice. For the modification to be considered approved it must change the enforceable rights and / or obligations of the contracting parties.

ASC 606-10-25-10

Powered by BetterDocs