Legal Definitions - substituted contract

A substituted contract is a type of contract that replaces an existing contract with a new one. It occurs when the parties involved in the original contract agree to replace it with a new one that has different terms and conditions.

For example, let's say that John and Jane enter into a contract for John to sell Jane his car for $10,000. However, before the sale is completed, John decides that he wants to keep the car and offers to sell Jane a different car instead. If Jane agrees to this new arrangement, they have entered into a substituted contract.

Another example of a substituted contract is when a contractor agrees to perform a different type of work than what was originally agreed upon in the contract. For instance, if a contractor was hired to build a house but later agrees to build a garage instead, this would be a substituted contract.

Overall, a substituted contract is a way for parties to modify an existing contract without having to cancel it altogether. It allows for flexibility and can be beneficial for both parties involved.