What must happen if a contract modification keeps the value over $500?

Under the Statute of Frauds, certain types of contracts must be in writing to be enforceable. One of these categories includes contracts for the sale of goods priced at $500 or more, as stipulated in the Uniform Commercial Code (UCC). This means that if a contract modification would result in a total value exceeding $500, it must also be documented in writing to validate the agreement.

The requirement for written modifications ensures clarity and provides evidence of the terms agreed upon by the parties, which protects both sides. Thus, if the modification maintains the contract's value over this threshold, a written document becomes essential to satisfy the legal requirements and ensure enforceability in any future disputes.

While verbal agreements may suffice under certain conditions for contracts valued under this amount or when specific exceptions apply, they do not hold up when the value surpasses $500. Similarly, informal modifications without clear documentation also lack legal standing in this context. Lastly, declaring the modification as automatically valid does not align with the statutory requirements set forth by the UCC; without documentation, the agreements cannot be deemed legally binding.