How does Texas law treat modifications to contracts?

In Texas, the general rule regarding modifications to contracts is that they typically require new consideration to be enforceable. This means that for a modification to be binding, it should involve something of value exchanged between the parties. However, Texas recognizes an exception to this rule: if the modification is made in writing and signed by the party to be charged, this can allow the modification to be enforceable without the need for new consideration. This is consistent with the general principle of contract law where a written agreement solidifies terms between the parties.

Understanding this principle is crucial, as it emphasizes the importance of formalizing modifications to ensure they are legally binding. The requirement for new consideration ensures that both parties are committing to the change and that the modification reflects a mutual agreement rather than an unilateral change to the original contract terms. The inconsistency in requiring a written modification to bypass the need for new consideration also highlights the significance of documentation in contract formation and modification processes in Texas law.