This amendment to
1. PURPOSE.
This amendment is the
2. AMENDED PROVISIONS.
The Original Agreement is amended and supplemented as follows:
3. TERM.
This amendment will become effective as described in section 12 below, and will remain in effect through the term of the Original Agreement, unless terminated at an earlier date pursuant to the provisions of the Original Agreement or by law.
4. INCONSISTENCY.
If there is a conflict between this amendment and the Original Agreement, the terms of this amendment will govern.
5. AGREEMENT CONTINUANCE.
Except as expressly modified and supplemented by this amendment, all other terms and conditions in the Original Agreement remain in full effect and continue to bind the parties.
6. AMENDMENTS.
No amendment to this amendment will be effective unless it is in writing and signed by a party or its authorized representative.
7. COUNTERPARTS; ELECTRONIC SIGNATURES.
8. SEVERABILITY.
If any provision contained in this amendment is, for any reason, held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability will not affect any other provisions of this amendment, but this amendment will be construed as if the invalid, illegal, or unenforceable provisions had never been contained in it, unless the deletion of those provisions would result in such a material change so as to cause completion of the transactions contemplated by this amendment to be unreasonable.
9. WAIVER.
No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this amendment will be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, and no waiver will constitute a continuing waiver, unless the writing so specifies.
10. ENTIRE AGREEMENT.
This amendment, together with the Original Agreement, constitutes the final agreement of the parties. It is the complete and exclusive expression of the parties' agreement with respect to its subject matter. All prior and contemporaneous communications, negotiations, and agreements between the parties relating to the subject matter of this amendment are expressly merged into and superseded by this amendment. The provisions of this amendment may not be explained, supplemented, or qualified by evidence of trade usage or a prior course of dealings. Neither party was induced to enter this amendment by, and neither party is relying on, any statement, representation, warranty, or agreement of the other party except those set forth expressly in this amendment. Except as set forth expressly in this amendment, there are no conditions precedent to this amendment's effectiveness.
11. HEADINGS.
The descriptive headings of the sections and subsections of this amendment are for convenience only, and do not affect this amendment's construction or interpretation.
12. EFFECTIVENESS.
This amendment will become effective when all parties have signed it. The date this amendment is signed by the last party to sign it (as indicated by the date associated with that party's signature) will be deemed the date of this amendment.
13. NECESSARY ACTS; FURTHER ASSURANCES.
Each party shall use all reasonable efforts to take, or cause to be taken, all actions necessary or desirable to consummate and make effective the transactions this amendment contemplates or to evidence or carry out the intent and purposes of this amendment.
[SIGNATURE PAGE FOLLOWS]
Date:_______________________________________ | By:____________________________________________________________ |
Date:_______________________________________ | By:____________________________________________________________ |
[PAGE BREAK HERE]
EXHIBIT A
Attach copy of Original Agreement.
How-to guides, articles, and any other content appearing on this page are for informational purposes only, do not constitute legal advice, and are no substitute for the advice of an attorney.
Change is an inevitable part of life, and the dynamic business world, governed by legal regulations, is no exception. Agreements and contracts serve as the skeletal framework of legal documentation and are frequently subject to change with growing businesses, changing ownership, or new rules and regulations. Changes such as adding, deleting, or correcting existing clauses or information may sometimes be required in a contract or agreement.
To amend a contract or business agreement requires continuous communication between two or more parties, careful planning, and technological expertise. This guide will explore the intricacies of modifying agreements to help you achieve optimal productivity.
An amendment agreement is used to amend or change the terms of an existing agreement between one or more parties. It documents revisions such as additions or deletions to the terms and conditions of an active agreement.
An amendment agreement outlines the specific details of the changes made to the original agreement and explains them.
To make an amendment agreement legally enforceable, all parties must agree to the changes in writing, with a signed and dated copy. This process ensures that any changes to the original terms of the agreement require the consent of all parties involved.
An addendum typically provides additional information without altering the original version of the document's terms. On the other hand, amendments introduce significant changes to the original agreement's terms.
Addendums help add supplementary details, such as clarifications, schedules, or attachments.
It's a good practice to use an amending agreement when you need to change the terms of an existing agreement.
It's easier to create an amendment than an entirely new agreement from scratch. An amendment agreement may be required if only some changes are needed in an agreement, simplifying the process of making changes, however major or minor they may be.
The U.S. Constitution is a great example, as it has been amended 27 times since 1789, according to the list of amendments compiled by Britannica.
There are several reasons why an agreement or contract amendment may be necessary. Some of the most common scenarios include:
Some instances when an amendment of agreement can be required are:
When amending a contract, in addition to the amendments, it's vital to include the following information:
It's crucial to check the existing version before amending a contract. Usually, there will be a clause that states how the parties may amend the current agreement. For instance, a contract may be revised, added to, or altered with the mutual consent of the parties in writing.
Once the process for amending the contract has been established, the next step is to make the necessary changes.
For minor changes, the party making the amendment may mark the provisions with red ink and make handwritten changes. Both parties must initial and date every modification to indicate their approval.
For significant changes, the parties involved can create a new document that outlines the sections to be modified, portions to be removed, definitions to be updated, and new clauses to be added. The new document must include the date the amendment took place and the original agreement's date and title.
After the amendments have been finalized and a written amendment agreement has been prepared by the parties involved, it will be signed by all parties as a formal indication of their approval of the changes.
Any changes to the original agreement must be documented and kept on record to show that the contract has been altered and is no longer a complete representation of the original agreement. This is important for anyone who may need to refer to them in the future.
In this clause, mention the purpose of the amendment for which the parties are entering the agreement. This confirms the parties' agreement that they're all on the same page regarding the amendment and provides a clear understanding. Also, mention the number of times the agreement has been amended, such as first, second, third, or more.
This clause ensures that the amended section(s) of the agreement will be known by its new name.
This clause indicates that the amendment will be effective through the term of the original agreement unless terminated at an earlier date under the provisions of the original agreement or by law.
It's essential to be careful when making changes to an agreement because sometimes, even a small change in one part of an agreement can have unintended consequences. For instance, you might accidentally add something that contradicts what was initially agreed upon. This section ensures that if there is any disagreement or conflict between the amendment and the original agreement, the amendment language will take precedence and be considered the final word.
This section confirms that except for those terms and conditions expressly modified and supplemented by this amendment, all other terms and conditions in the original agreement remain effective and binding for the parties.
This clause states that regardless of where the parties sign the amendment or how they transmit signatures (via electronic devices such as computers or fax machines), all the separate pieces will be considered part of the same instrument. This provision allows business to be conducted efficiently across different locations while maintaining the agreement's validity.
This protects the terms of the amendment as a whole, which means that even if part of an amendment is found invalid, illegal, or unenforceable, it will not affect the rest. For example, if a state law is passed prohibiting faxed copies of signature pages, it will not undo the entire agreement. Instead, only the references to faxed copies of signature pages would be deleted, leaving the rest of the agreement unchanged.
There is an exception in this section. If an essential part of the agreement is invalidated, the agreement may terminate. For example, if a law is passed in your state saying that amendments are prohibited, the purpose of the amendment is lost. In such cases, the agreement will probably be invalidated.
A “waiver” occurs when one party does something that gives up a right that they have. This can take written form or can be some kind of action. For example, assume your amended language states that a company must pay a manager within ten days after it receives an invoice. If the company doesn’t do this and the manager doesn’t insist on it, the manager is said to have “waived” its right to require this deadline.
This section states that any changes to the amendment are only effective if such changes are made in writing and signed by the parties. This means that in the example just provided, the manager has not waived its rights. It did not make a written waiver– the waiver was the action that the manager took.
This section confirms the parties' agreement that this amendment and the original document they're signing is "the final agreement" about the subject. It's the complete and exclusive expression confirming that the parties agree to the subject matter. For example, if the parties had exchanged letters that contradicted provisions in the agreement, those documents wouldn’t be considered part of the agreement.
It also clarifies that all prior communications, negotiations, and agreements between the parties on the subject matter of the amendment are merged and superseded by this amendment and that there are no conditions present prior to this amendment's effectiveness unless set forth expressly in this amendment.
This section explains that the headings at the beginning of each section and subsection of this amendment are meant to organize the document conveniently. These labels are meant to help as you’re skimming the document or searching for a specific section. The headings shouldn't be used to interpret or construct the clauses.
This clause indicates that the amendment will become effective when all parties have signed it. However, the amendment will become effective when the last party signs it, and the date of the amendment will be the date of the last party's signature.
This clause highlights that each party shall put all reasonable efforts and appropriate actions into making this amendment and the transaction surrounding it effective. It explains that even if a party is not specifically required to sign a document or take some action by the amendment, the other party can insist on it if it’s needed to make the amendment effective.
This allows the parties to make an agreement that doesn’t list every possible act that will ever need to be taken. If an act becomes necessary to make the amendment effective, this section requires the parties to perform that action. Note that this applies only to reasonable acts: a party will not be required to do anything and everything possible to make the amendment work.
Sometimes, making specific changes to an existing contract might be inevitable. Whether adding new clauses, removing existing ones, or correcting errors, the most optimal and streamlined approach is to create an amendment. An amendment supplements the original contract, allowing for the necessary modifications without creating an entirely new agreement.
The information required to complete the amendment of the agreement is as follows:
Making a new contract is often labor-intensive and time-consuming. A new agreement is recommended when the previous amendments are significant in number and will significantly impact the original arrangement.