After entering a contract with another person or business, both parties should abide by the terms of the agreement. However, situations can change, making keeping the terms challenging. A contract amendment helps to adjust the terms. It allows parties to change, add, or subtract the terms of the already existing contract.
The party desiring the change should communicate clearly why and to what extent they want the contract amended. If the other party agrees, you can amend and sign. But if they resist the changes, further legal action can be taken to enable you to agree or negotiate the amendment. This article will explain all you need to know about creating and amending a contract.
What Is Amending an Existing Contract
Amending an existing contract is the changes made to an original contract previously agreed upon by both parties. An amendment can include:
- Addition
- Deletion
- Modification
- Combination of the above
Ideally, the original document remains intact, with only some parts changed. When a small change is being made, an addendum can be added to the contract. But if the changes are significant, then an amendment is best suited.
When to Amend a Contract
You should consider amending a contract anytime there is a deviation from the original contract or a probability that a need for deviation will arise. You can also change the contract if a part of the provision doesn't work well for both parties. Examples of situations when amendment may be required include:
- Changing prices or fees for a service or product
- Extending or shortening the contract length
- The people named in the contract change
- The process outlined in the contract changes
- When the state or county law changes that directly affects your business
- When part of the contract failed to abide by the Common Law and Uniform Commercial Code laws (Section 2)
Before approaching the other party for an amendment, review all possibilities of finding a solution before proposing the change.
How to Modify an Existing Contract with a Contract Amendment
Modifying an existing contract with a contract amendment can be done in three main ways. They include:
- A contract amendment letter outlining the changes to the original document is used. The letter should state it is an amendment to the original contract, and each change should be listed in bullet or numerical form.
- Creating a contract amendment from an online template, such as a lease amendment template, if it's a landlord-tenant relationship. You can also use the services of a legal or business service provider. The template will provide the areas to fill in your details and the changes to be made.
- Change can be implemented by drafting your own amendments and adding them to the original document. The new additions should follow the same format and font as the original contract.
Regardless of the method you choose, the changes should be well outlined, and both parties must agree to it and sign.
How to Draft an Amendment in a Contract
For an amendment to be valid, you must include some words and sections that show who and what is included in the revisions and which areas are undergoing changes. Here's how to do it:
- Start by creating a title stating that it is an Amendment and include the names of the involved parties.
- Next, add the full legal names of the parties involved, as listed in the original contract.
- In bullet or number form, list the changes to be made and ensure you use a language that shows revision has occurred. For example, if it's a section you want to delete, state that section A is hereby deleted.
- Use similar font, margins, and heading type as the original contract where possible.
- At the end, add a clause stating that the sections that haven't been touched remain in effect.
- Add a signature box and dateline for both parties to sign.
How to Show Amendments in a Contract
When creating a contract amendment, you must clearly show the sections being deleted, added, or modified. Whether you plan to add the amendment in the form of a letter or from a customizable template, the following are the four ways to show the amendments:
- Use strikethrough fonts to show the area being deleted. For example, the term for this contract ends on ~~December 31, 2023, ~~December 31, 2024.
- Highlight or underline the new text that you are adding. For example, the updated price for product A shall be $115.
- Replace an entire clause with a new one by stating, "Section 8 has been replaced entirely with the following…"
- Describe the amendment being made without touching the original contract. For example, the second sentence to section 8 has been modified from December 31, 2023, to December 31, 2024.
What Is an Example of Amendment Language
An amendment language is the words and phrases used when modifying an original contract to ensure it is valid and legally binding. Here is an example of an amendment language.
The term of this contract shall be from December 31, 2024. The parties must inform each other of the plan to renew the contract no later than October 30, the year the contract ends. The rest of the clauses remain in full force and effect.
Process To Amend A Contract
Amending a contract can transform the working relationship for the better as it gives a clear picture of the responsibilities of each party. Follow these steps to ensure both parties leave the table satisfied with the process:
- Read the existing contract carefully and highlight the areas you desire to change. Ensure you have a proper understanding of what the changes entail.
- Arrange the areas to be amended in order of importance. The most crucial parts should be addressed first.
- Create the document and include every clause that needs to be modified, deleted, or removed. Mention how it relates to both parties where applicable.
- Plan a meeting to review the document with the other party and address any concerns raised. After deliberation, change the language, figures, or extent of the new obligations.
- Sign the amendment and attach it to the original contract.
Creating contracts and agreements can be time-consuming and expensive. Make sure to use a contract template to make this process easier and faster.
Get a Lease Amendment Template
Helpful Resources
After entering a contract with another person or business, both parties should abide by the terms of the agreement. However, situations can change, making keeping the terms challenging. A contract amendment helps to adjust the terms. It allows parties to change, add, or subtract the terms of the already existing contract.
The party desiring the change should communicate clearly why and to what extent they want the contract amended. If the other party agrees, you can amend and sign. But if they resist the changes, further legal action can be taken to enable you to agree or negotiate the amendment. This article will explain all you need to know about creating and amending a contract.
What Is Amending an Existing Contract
Amending an existing contract is the changes made to an original contract previously agreed upon by both parties. An amendment can include:
- Addition
- Deletion
- Modification
- Combination of the above
Ideally, the original document remains intact, with only some parts changed. When a small change is being made, an addendum can be added to the contract. But if the changes are significant, then an amendment is best suited.
When to Amend a Contract
You should consider amending a contract anytime there is a deviation from the original contract or a probability that a need for deviation will arise. You can also change the contract if a part of the provision doesn't work well for both parties. Examples of situations when amendment may be required include:
- Changing prices or fees for a service or product
- Extending or shortening the contract length
- The people named in the contract change
- The process outlined in the contract changes
- When the state or county law changes that directly affects your business
- When part of the contract failed to abide by the Common Law and Uniform Commercial Code laws (Section 2)
Before approaching the other party for an amendment, review all possibilities of finding a solution before proposing the change.
How to Modify an Existing Contract with a Contract Amendment
Modifying an existing contract with a contract amendment can be done in three main ways. They include:
- A contract amendment letter outlining the changes to the original document is used. The letter should state it is an amendment to the original contract, and each change should be listed in bullet or numerical form.
- Creating a contract amendment from an online template, such as a lease amendment template, if it's a landlord-tenant relationship. You can also use the services of a legal or business service provider. The template will provide the areas to fill in your details and the changes to be made.
- Change can be implemented by drafting your own amendments and adding them to the original document. The new additions should follow the same format and font as the original contract.
Regardless of the method you choose, the changes should be well outlined, and both parties must agree to it and sign.
How to Draft an Amendment in a Contract
For an amendment to be valid, you must include some words and sections that show who and what is included in the revisions and which areas are undergoing changes. Here's how to do it:
- Start by creating a title stating that it is an Amendment and include the names of the involved parties.
- Next, add the full legal names of the parties involved, as listed in the original contract.
- In bullet or number form, list the changes to be made and ensure you use a language that shows revision has occurred. For example, if it's a section you want to delete, state that section A is hereby deleted.
- Use similar font, margins, and heading type as the original contract where possible.
- At the end, add a clause stating that the sections that haven't been touched remain in effect.
- Add a signature box and dateline for both parties to sign.
How to Show Amendments in a Contract
When creating a contract amendment, you must clearly show the sections being deleted, added, or modified. Whether you plan to add the amendment in the form of a letter or from a customizable template, the following are the four ways to show the amendments:
- Use strikethrough fonts to show the area being deleted. For example, the term for this contract ends on ~~December 31, 2023, ~~December 31, 2024.
- Highlight or underline the new text that you are adding. For example, the updated price for product A shall be $115.
- Replace an entire clause with a new one by stating, "Section 8 has been replaced entirely with the following…"
- Describe the amendment being made without touching the original contract. For example, the second sentence to section 8 has been modified from December 31, 2023, to December 31, 2024.
What Is an Example of Amendment Language
An amendment language is the words and phrases used when modifying an original contract to ensure it is valid and legally binding. Here is an example of an amendment language.
The term of this contract shall be from December 31, 2024. The parties must inform each other of the plan to renew the contract no later than October 30, the year the contract ends. The rest of the clauses remain in full force and effect.
Process To Amend A Contract
Amending a contract can transform the working relationship for the better as it gives a clear picture of the responsibilities of each party. Follow these steps to ensure both parties leave the table satisfied with the process:
- Read the existing contract carefully and highlight the areas you desire to change. Ensure you have a proper understanding of what the changes entail.
- Arrange the areas to be amended in order of importance. The most crucial parts should be addressed first.
- Create the document and include every clause that needs to be modified, deleted, or removed. Mention how it relates to both parties where applicable.
- Plan a meeting to review the document with the other party and address any concerns raised. After deliberation, change the language, figures, or extent of the new obligations.
- Sign the amendment and attach it to the original contract.
Creating contracts and agreements can be time-consuming and expensive. Make sure to use a contract template to make this process easier and faster.
Get a Lease Amendment Template
Helpful Resources
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