What happens when a party materially alters a contract without consent?

Study for the Business Senior Exam. Use flashcards and multiple-choice questions with hints and explanations. Prepare confidently!

When a party materially alters a contract without obtaining consent from the other party, it can result in significant implications for the contractual relationship. In this particular scenario, the innocent party is typically afforded the right to be discharged from the contract due to the material change that was made unilaterally.

Material alterations are changes that fundamentally affect the rights or obligations of a party under the contract. When one party makes such alterations without agreement, the trust and consensus that are essential for any valid contract are breached. This breach provides the innocent party the ability to declare the contract void or seek legal remedies, reflecting that the modified terms cannot be enforced against them.

The validity of the altered contract does not hold, as it was not mutually agreed upon. Instead, the original terms would govern until a proper consensus is reached regarding any modifications. Similarly, termination is not automatic but rather contingent upon the actions of the innocent party. Their right to be discharged allows them to uphold their interests without being held accountable for the unapproved changes made by the other party, reaffirming the principle that all contractual changes require mutual consent to remain valid and binding.

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