Contract Modification Does Not Require New Consideration

On May 23, 2024, the First Department issued a decision in Kataman Metals LLC v. Macquarie Futures USA, LLC, 2024 NY Slip Op. 02869, holding that a modification to a contract does not require new consideration, explaining:

Contrary to the motion court’s holding, the June 17 emails do not require new consideration to the extent they constitute a written modification of the parties’ existing customer agreement.

A modification to a contract need not refer expressly to the existing contract. Here, the emails at issue sufficiently demonstrate the parties’ clear agreement to be bound by the modification and new terms.

(Internal citations omitted).

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