Opinion ID: 2167433
Heading Depth: 2
Heading Rank: 1

Heading: Claim of Unilateral Modification

Text: The tenant argues that interpreting the agreement to allow for a rental increase results in a unilateral modification of the agreement. Generally, a consent agreement is enforceable as written, absent good cause for setting it aside. Moore, supra, 542 A.2d at 1254 (citing Biggs v. Stewart, 418 A.2d 1069, 1071 (D.C. 1980) (other citation omitted)). We have said that `[t]o encourage voluntary settlements, settlement agreements should not be modified in favor of either party, absent the most compelling reasons.' Camalier & Buckley, supra, 667 A.2d at 825 (quoting Moore, 542 A.2d at 1255). This principle, however, does not preclude interpreting undefined terms in the agreement consistent with the law in effect at the time of its making, which is deemed to be incorporated into the terms of the agreement. See Double H Hous. Corp., supra, 799 A.2d at 1199 (holding that laws in effect when a contract is made are incorporated into its terms) (citations omitted). Contrary to the tenant's argument, interpretation of the agreement consistent with the foregoing rule of interpretation does not amount to a modification of the contract. A modification of a contract occurs when there is an alteration of its provision to include new or additional obligations, while leaving the original agreement otherwise intact. See Hildreth Consulting Eng'rs v. Larry E. Knight, Inc., 801 A.2d 967, 974 (D.C.2002) (citations omitted) (explaining modification where effected by the contracting parties' agreement to alter the contract by including additional obligations); see also Enserch Corp. v. Rebich, 925 S.W.2d 75, 83 (Tex. App.1996) (Modification of a contract is some change in an original agreement which introduces a new or different element into the details of the contract but leaves its general purpose and effect undisturbed.) (citation omitted). Since the law in effect at the time of the contract is deemed to be a part of it, see Double H Hous. Corp., supra, 799 A.2d at 1199, construing the contract consistent with the law then in effect does not introduce a new or different element. It simply recognizes an element that existed at the time the parties made the agreement and that formed a part of the contract. See id. Moreover, a party to an agreement is bound by usages of the terms which he or she had reason to know. Intercounty Constr. Corp., supra, 443 A.2d at 32. Here, the parties knew or had reason to know that the rent control laws permitted a landlord to implement rent increases from time to time. [6] Indeed, the tenant acknowledged that his rent had been increased yearly since he first occupied the unit in 1997. Thus, the tenant was aware that the amount of rent could be increased during his tenancy. For all of these reasons, we must reject the tenant's argument that construing the agreement consistent with the law in effect at the time the agreement was entered results in a unilateral modification of the agreement. The tenant argues that interpreting the term rent to mean the amount demanded or charged by the landlord effectively allows the landlord to demand illegal rents. There is always the possibility that someone will violate the law, but there is no presumption to that effect. [7] Reading the term in this manner does not negate the tenant's right to challenge the rent increase demanded when there are grounds for doing so, just as the tenant did in this case. See D.C.Code § 42-3502.06(e) (2001) (A tenant may challenge a rent adjustment implemented under any section of this chapter by filing a petition with the Rent Administrator under § 42-3502.16.). Just as nothing in the parties' agreement precluded the landlord from implementing lawful rent increases, nothing in their agreement precluded the tenant from exercising his right to challenge the increase. The law in effect giving the tenant the right to challenge a rent adjustment, absent any provision to the contrary in the document, must also be considered to form a part of the contract. See Double H Hous. Corp., supra, 799 A.2d at 1199. In summary, we conclude that there was no ambiguity in the term rent as used in the parties' agreement. Although not defined in the parties' contract, the meaning of the term is defined by statute in this jurisdiction to mean the amount demanded, received, or charged by the housing provider. Nothing in the parties' agreement precluded the landlord from implementing a rent increase consistent with applicable law, or the tenant from challenging the legality of the increase demanded.