Although at the beginning of a contract the parties may have a certain understanding, managers are sometimes in a position where a change in the agreement becomes necessary. In this chapter’s Theory to Practice problem, it is clear that the parties need to retool their agreement to reflect (1) Ishmael’s concern that the assignment is more work than originally anticipated, (2) Export’s weakened financial position, and (3) Ishmael’s desire to substitute his brother to complete the assignment.

Draft a memorandum to your senior manager outlining specific options and consequences for altering these agreements through rescission, accord and satisfaction,
substitute agreement, and/or novation. See Connect for Manager’s Challenge sample answers.