A bilateral modification is used to ____________.

A bilateral modification is used to amend or change the terms of a contract because it involves mutual agreement and consent from both parties to adjust elements of the original contract. This could include alterations in the scope of work, delivery schedules, or other contractual terms that require the collaboration and acknowledgment of both the buyer and the seller. Such modifications are essential for ensuring that any changes reflect the needs and agreements established by both parties, maintaining the integrity of the contract while allowing flexibility to adapt to new circumstances.

The other options do not accurately represent the primary function of a bilateral modification. While a contract can be terminated, and disputes can be resolved through various mechanisms, these actions do not typically require bilateral modifications. Similarly, increasing the contract value may be part of an amendment, but it does not cover the broader scope of what a bilateral modification encompasses, which is the overall adjustment of contract terms through mutual consent.