11/7/2021 0 Comments
Business contracts play a crucial role in all parts of a company. It is not just a legal document outlining the business protocols but something that determines how the business runs.
It is the guiding tool for anyone joining the company whereby each is expected to act in the manner said in the contract.
To define, a business contract is an agreement made between the business parties, and each of them must abide by the terms and conditions as mentioned in the same.
Often, it so happens that after presenting the contract to the involved parties, they recommend a few changes.
This leads to amendments in the original contract.
Keeping this in mind, let's discuss why and when do you need a contract. Thereafter, we will see how to add amendments within the same, in order to correct any error or confusion.
Why Do You Need A Business Contract?
Unlike other documents, business contracts are written pieces of documents that are enforceable in the eyes of the law.
Having a business contract provides solid proof to either of the parties in case of disputes.
Where an oral agreement is subject to its vagueness, written business contracts are specific and are duly signed by all the parties.
A well-drafted business contract will have all of the details, the rights and responsibilities of all the parties, the purpose of the engagement, dispute resolution clauses, etc. If under any situation amendments to the contract are needed, it is important that they are thought out and added to the document in the right way.
What Do You Mean By Contract Amendments?
Often it so happens that the contract is more of a standard document used over and over by one side.
Contract terms, as added by that party to that standard contract, might not be acceptable by the other party this time, despite being acceptable in the past which may then request changes.
These requests may occur once the contract is signed. This is what we call contract amendments.
One thing to note here is that amendments may replace terms in the existing contract or add more to the same. It could be said that the contract is modified to be acceptable by both parties.
Also, changes embedded within the contract before signing isn't an amendment technically.
This implies that if you have just drafted the contract and shared the same with others, modifications here wouldn't be an amendment.
How To Add Amendments To The Contract?
There are three different ways to amend an existing contract,
1. Strikethroughs: Making changes in the contract directly is termed as strikethroughs. What this means is that a red mark is used to cut through the clause or any line and write what fits best. Make sure that all of the parties agree to the same and that the alteration is dated.
2. Replacing the section: Another way to amend a contract is to replace the entire section with a different document. In the beginning, mention which section is being replaced and then go ahead adding the amendments in the best possible way.
3. Describe Changes: Instead of using the strikethrough method or replacing the section, the one way is to create a separate document where you mention what needs to be changed and how. Even though the method takes time and is harder to read, it is considered an ideal and formal way to make amendments to the contract.
Legal Terms Concerning Contract Amendments
Amendments: changes or modifications in the existing contract.
Waivers: to refrain from existing or enforcing a legal right
Consent: agree to act in a certain and specified way.
As much importance as a contract holds, amendments are equally important and must be added effectively to avoid confusion or correct errors.
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Yoel “Mo” Molina, I am a lifelong resident of Miami, Fl. I am a graduate of Miami Senior High, Class of 1992, Georgia Institute of Technology, B.S. 1997 and University of Maine School of Law, J.D. 2001. I have been practicing law in Miami Since 2001. I am a former training prosecutor in the Miami-Dade State Attorney’s Office. I have experience in jury trials, appeals, and administrative hearings. I have appeared before judges across the State. My experience ranges from civil litigation matters, collection matters, foreclosure, business and corporate, contracts, real estate, leases and employment matters..
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