Four Tips for Writing Contract Amendments - PowerPoint PPT Presentation

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Four Tips for Writing Contract Amendments

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Drafting a sound contract often requires seemingly endless negotiations and countless versions of the agreement before all parties are satisfied. But, despite spending days, weeks, or even months getting a contract into a mutually acceptable format, circumstances often arise necessitating some sort of amendment to the existing contract language. It is important to remember that an amendment changes something in the contract, as opposed to an addenda which would involve making additions to the contract. – PowerPoint PPT presentation

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Title: Four Tips for Writing Contract Amendments


1
Four Tips for Writing Contract Amendments
2
Clarify the clause(s) requiring amendment.
  • As mentioned, amending a contract entails making
    a change to the contract language as it stands.
    Thus, it is important to state with absolute
    clarity which portion of the contract is being
    revised. Most contracts have numbered and/or
    lettered paragraphs and subparagraphs with brief
    titles or descriptions, and these sections should
    be referenced at the beginning of the amendment.
    In some cases, a specific page number and clause
    may be used to identify the section at issue

3
Specify the discarded contract language and the
replacement language
  • There are different ways that the contract
    language can be amended, such as crossing out
    certain words and specifying the language that is
    replacing it. Or, an entire paragraph can be
    stricken, with the amendment providing the new
    paragraph that serves as its replacement. It
    doesn't matter which way you do it, so long as
    there is consistency and no ambiguity as to what
    language is being taken out and what language is
    being inserted.

4
Identify the terms that remain in effect
  • It is also important to clarify in the amendment
    that some or most portions of the contract remain
    unaffected. For example, if there is only one
    paragraph in the contact that is being amended,
    but the rest of the contract should remain
    unchanged, the amendment can make this clear with
    a brief statement to that effect.

5
Sign and distribute the final agreement
  • An amendment is useless unless everyone agrees to
    it, it is signed by all signatories to the
    contract, it is appended to the original
    agreement, and all parties receive a copy. People
    mistakenly believe that they can make unilateral
    or verbal changes to an existing contract, but in
    the event of a dispute, only a written, signed
    amendment will actually hold up well in court.

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