How an Existing Contract can be amended?

By The Law Office of Yoel Molina.
 
An amendment is the best option if a contract already exists and you and the other party wish to change some aspect of it, whether it be an addition, deletion, correction, or similar change.

Only the portion of the original contract affected by an amendment is replaced (for example, the delivery date or the price for goods). An "amendment and restatement," which is an agreement that replicates the prior contract with the agreed-upon revisions, is often preferable if a contract requires significant adjustments.
 
A Contract's Modification Period:
Every time you and the other parties desire to change the terms of a signed contract, it's crucial to alter the contract rather than counting on the other party's consent (verbal or written). You risk punishment for violating (or "breaching") the agreement if you fail to update the contract correctly but act as though you have. How to implement the agreed-upon changes is explained in the next paragraphs.
 
Before you sign the contract, you can make changes:
Such changes are not "amendments" if you make them to a contract before you sign it. If you want to make a change by hand to a contract that has been printed out and signed, for instance, if you need to correct a typo because you just realized it, you can use a pen and have both parties initial it. These changes are sometimes referred to as amendments even if they aren't in reality.
 
Formalizing Your Modification:
Certain contracts have provisions that require all revisions to be made in writing and with the consent of all parties, such as the ones outlined below.
 
In its entirety:
According to this clause, the contract represents the parties' whole understanding. Any oral understandings between the parties, as well as any earlier writings, are repealed and replaced by this agreement. This Agreement and any exhibit or annex thereto may only be modified or amended by writing signed by both parties, and such modification or amendment shall be effective only if in writing.

Surprisingly, the clause above's demand that adjustments be made in writing isn't always followed through with. According to one court, the justification is that parties to a contract cannot, even by a written provision in the contract, deprive themselves of the power to alter or terminate that contract by a later agreement; as a result, a written contract may be modified by the parties in any way they see fit. In other words, a language in a contract demanding written modifications won't always be upheld. If one or both parties relied on an oral amendment to carry out the contract, there is less possibility that it will be upheld.

Waivers, Consents, and Modifications:
Sometimes the parties choose to depart from the agreement but do not require its modification. For instance, despite the fact that it might legally be against the terms of the contract, one party to a nondisclosure agreement might grant the other party authorization to divulge specific facts to specific individuals. Although they are more appropriately defined as "waivers" or "consents," these deviations, in which a party waives a provision or authorizes something that is normally banned by the contract, are occasionally referred to as modifications. Contrary to an amendment, consent or waiver does not change the terms of the agreement; rather, it excuses or approves actions that the contract would otherwise forbid. Waivers and consents must be in writing.
 
Making a Contract Amendment:
Being as precise and succinct as feasible is the aim when writing a contract amendment. The document may appear casually, such as in a letter agreement, or it may have the same font and layout as the original contract. The three basic forms of amendments that are typically used are detailed here, along with examples for each.

Example 1: Strikethroughs and Redlines: By underlining new content and crossing out removed material, you may visually demonstrate changes and deletions to the contract. (Most word processing applications let you select "strikethrough" as your preferred font style.) Commonly, the amendment is preceded by a statement outlining the procedure used to develop it.

Example 2: Completely Replace a Clause: With this approach, you can change a contract by simply stating that a provision has been replaced in its entirety and providing the new clause. This is how it seems.
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Example 3: Third Approach: Defining the Modification: This is how you describe the modifications. Although this is frequently shorter, the parties must nevertheless compare it to the actual contract language.
 
Contract Amendments vs. Addendums:
Use an amendment to the contract rather than changing it to include new clauses. In addition, as opposed to an amendment, does not alter the provisions of the original contract. Instead, an addendum completes the contract by adding clauses or defining terms that were not included in the original document.


If you have any questions about this article or similar matters, please contact our office, the Law Office of Yoel Molina, P.A., at fd@molawoffice.com or 305-548-5020, option 1