Contractors try to get all the essential details in writing the first time, but life happens. Contracting parties must amend contracts when they receive new information or discover deficiencies in the agreement or when there are unforeseen situations. For example, the rapid and unexpected spread of the Covid 19 virus in the spring of 2020 has led many companies to change existing contracts, either due to supply shortages or an inability to work due to what has happened, the travel ban or other consequences of the pandemic. This article provides companies and lawyers with instructions on the typical steps used to modify a contract, before and after an agreement is signed. The amendments differ from the additions, although these concepts are sometimes exchanged. While an amendment changes an existing contract, an endorsement is a document added to an existing agreement, possibly adding conditions or requirements that were previously excluded from the original contract. This change applies to Section IV, Sub-Part B, iii), paragraph (iii), which states that “goods to be acquired under this contract are delivered with all imperfections and without any guarantee, express or implied, including the guarantee of accessibility or suitability for a specified use,” and replaces it with “seller ensuring that the goods are free of material error or transformation (the “guarantee”) for a period of six months (6) months. The seller refuses any other express or implied guarantee, including any guarantee of accessibility or suitability for a specific purpose. For all kinds of changes, add that only the referenced sections will be replaced and that the rest of the original contract will remain as it was. For example, the editorial party may write: “All other conditions that have not been changed by this amendment or by previous amendments will remain fully in force.” Make sure all parties sign and date the change.
Parties may use witnesses or, if necessary, authenticate the amendment in a notarial manner. Provide copies to all parties as soon as they are signed. If you are developing a contract change, you should be as concise and accurate as possible. The document can be informal, z.B. an acre letter, or it may resemble the original contract in the layout and font and the changes can come in the form of many different styles. If a party wishes to make major changes, it must first negotiate the changes and language with its opponent. Once the parties agree to changes, the party requesting the changes may require the author of the document to modify the previous version so that it can tell the agreed changes. All parties should check the document one last time before it is executed to ensure that the changes are correct and that all previously agreed languages of the previous version are intact. Microsoft Word`s “Compare Documents” is a useful tool that allows users to compare two versions by displaying changes made to the original document.
Kira System`s powerful contract analysis tools also make it easy to compare contracts. Note that changes made during this process are not changes when you negotiate a contract. As there is no existing treaty, there is nothing to change. They are simply negotiating the initial terms. A contract amendment allows the parties to amend an existing contract agreed upon.