You can use a contract amendment template when your existing contract needs an adjustment to suit the requirements of both parties. By using this template, there may be no need to draft a new contract from scratch.
Table of Contents
- 1 When making a contract amendment, keep these things in mind:
- 2 Methods for making a contract amendment:
- 3 How to create a contract amendment?
- 4 Conclusion:
When making a contract amendment, keep these things in mind:
There’s a need for a contract amendment to change the terms of a contract. Amendment means to add, delete from, correction, or make some other changes to the original contract. You should consider the following points to create a contract amendment;
- Various amendments to an existing contract aren’t suggested, particularly if they change prior amendments. However, you can come up with a single amendment that restates and negates all of the previous amendments.
- Instead of just adding, changing or deleting a part of contract, restating the entire paragraph or provision of the contract that’s under changes is better.
- Upon completion, remember to date the contract amendment. You should ensure that it’s signed by the ones who also affixed their signatures to the original contract. You may also like Consulting Contract Templates.
Methods for making a contract amendment:
Ensure that the language is clear, concise, and specific while creating a contract amendment or a contract addendum template. Here are three different styles that you can use to create this document;
With the use of redlines and strikethroughs, changes in the original contract are visually shown. For example, with an underline and deleted texts get crossed out using a strikethrough option, an addition to the contract gets signified. Word processing application is the best to do this.
Before amendment, include a clarifying statement that explains the process used to draft the amendment. This makes clear that using underlines or deletions using strikethroughs you will indicate additions. Then, notice the part that you changed.
Simple state the clause that you need to replace completely and then add the new clause in its place.
This method needs an explanation of the portion of the amendment that’s the subject of change. This method saves a lot of precious time. The parties of the contract have to verify the amendments made to the original contract.
How to create a contract amendment?
Contracts are usually considered consequence-imposing and rigid documents that need strict compliance from the concerned parties. It’s specifically true that contracts make legally binding responsibilities that the parties must perform in a specific manner. Still, you can write them in a way that’s completely inflexible. This is still legal and enables both parties to make amendments in a contract when require without causing unwanted issues.
Keep in mind that addendum templates and contract amendments are just as important as the original contract itself. This is because it changes the nature or meaning of the original agreement. You should consider the following tips while making this document;
Avoid using strikethroughs and insertions as much as possible
Using strikethroughs on language that you’re changing and insertion of language that reflects the desired change isn’t a better and easier way to make a contract amendment. However, it is one of the ways to make the amendment but it isn’t best. This can be effective for short contracts dealing where only minor details require amendment. But, it is never suggested for complicated agreements.
You must avoid this amendment method if possible, specifically, if you want to make a lot of changes. This way, the contract becomes difficult to read and can render the amendments made to interpretations. In understanding the substance of the amendments, too many strikethroughs and insertion can cause some difficulties.
Create a document entitled “amendment”
It’s suggested to draft a comprehensive document for the benefit of both parties that includes he changes to make in the original contract. ‘Amendment’ is an appropriate name for this document. In the contract you are changing, make it very clear.
Furthermore in making the original contract and the contract amendment, there is really not much difference. This is because the parties still have to agree on the changes to make particularly on the wording.
Clarify which part you’re revising
If a contract was well-written, you can easily discern. This indicates in the way you organize the paragraphs, subparagraphs, sections, and subsections. Referencing a well-written contract for details will still be a lot easier even with the more complex contracts. It becomes very easy to assign the different parts of the organized contract. When it comes to the amending of a contract, this is very essential.
Be very specific
The amended language to use is as essential as locating the specific section to amend in a contract. You should ensure that it’s clear and specific. Location concerns with the form but the language concerns with the substance. For example, if one of the sentences should undergo a revision then determine it first. After that, the amendment must indicate the new sentence completely.
Replacing this or that word with another word isn’t enough. The amendment should be the complete sentence that you have to change. Include a statement that states something such as “is hereby being replaced with.” It continues with the re-written sentence.
Signature and initial
Both parties have to sign the document to place it into effect when they have agreed upon the final version of the amendment you’re proposing. Then, they can disseminate the final version to all of the involved parties. After this, include it to the original contract. Since it needs the agreement of both parties to become effective so this amendment is as essential as the original contract itself. You should also check Behavior Contract Templates.
In conclusion, a contract amendment template is a useful tool used to make amendments in the existing contract instead of creating a new contract. The language you will use in the agreement should be clear, concise, and specific. Don’t make various amendments again and again to a single contract. You can use this document to change the terms of a contract.