Certified Professional Contract Manager (CPCM) Practice Exam 2026 - Free CPCM Practice Questions and Study Guide

A bilateral change in a contract is characterized by the exchange of promises or obligations between both parties involved. This means that both parties agree to modify some terms of the contract, resulting in a mutual understanding that benefits each side. The essence of a bilateral change lies in the fact that it requires consent from both parties, leading to a formal adjustment of the contract that reflects their new agreement.

In contrast, a unilateral decision by one party involves only one side making changes without the need for agreement from the other party. This does not constitute a bilateral change. A change that does not significantly alter the contract focuses on minor adjustments, which may not necessarily require the mutual agreement characteristic of a bilateral change. Similarly, an informal agreement without documentation lacks the formal and binding nature that is inherent in a bilateral change. Therefore, the correct understanding of a bilateral change emphasizes the collaborative engagement between parties through the exchange of promises and obligations.