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hello and welcome to this session in which we will discuss contract modification first of all what is a contract modification well contract modification occurs when you have a change in the terms of the contract and the contract is an ongoing contract well the simplest example i can give you is when you have a cell phone plan with a tnt verizon t-mobile whats going to happen sometime you might add a data plan you might increase your data plan you may add a new line you may reduce the features on your line well whats happening here is you are modifying your contract with that service provider that service phone providers so how do companies treat contract modification well companies first they need to determine whether this modification constitute a new contract do they have a new service a separate obligation thats the first thing they have to do or is the modification of the existing contract so simply put do we have a new contract as a result of this modification or this is just