Florida Building Contractor Business/Finance Practice Exam

For a change order to a home improvement contract to be binding, what must it contain?

1. Date of modification

2. Signatures of both parties

3. A witness signature

4. Detailed description of changes

The correct answer is: Signatures of both parties

For a change order to be binding in a home improvement contract, it is essential for the document to contain the signatures of both parties involved in the contract. This requirement stems from the principle of mutual agreement in contract law, which dictates that all parties must acknowledge and consent to the modifications being made. By having both signatures, it demonstrates that both the contractor and the homeowner have come to a clear understanding of the changes, accept the new terms, and are committed to adhering to them. While including a date of modification, a detailed description of changes, and a witness signature may be useful or even advisable for clarity and record-keeping purposes, they are not strictly necessary for the change order to be deemed binding. The critical factor is the mutual assent indicated by the signatures, making that element the core requirement for the change order's enforceability.