Here are some tips for modifying an existing contract. If you already have a written contract between yourself and another party and you want to amend some element of it, you may consider consulting with your Arizona business attorney in order to do so. A correction, deletion, or addition are the primary reasons you might consider modifying an existing contract.
Is an Amendment the Same Thing as a New Contract?
Your amendment does not replace the entire original contract. Rather, the amendment only changes the particular portion of the contract. Common examples of what might be modified in a contract, for example, include the price of goods or the delivery date. If the contract requires extensive modifications, it is typically better to generate an entirely new agreement. If you need some minor changes but will want them incorporated in writing, you will want to create what is known as an amendment and restatement.
Do We Really Need to Modify the Original Agreement?
The first thing to ask yourself before going through the process of amending the contract is whether or not this action is truly necessary. There are times when you may wish to deviate from the initial terms of the contract but you don’t actually need to modify the document. For example, a nondisclosure contract might allow one party permission to disclose facts to certain individuals, even though this might actually violate the language in the contract. These deviations are frequently incorporated as amendments, although they are more accurately defined as consents or waivers.
A consent or waiver does not actually modify the agreement, unlike an amendment. Instead, it allows activities that would otherwise be prohibited by the contract. Modifying contracts can be confusing, so leave it up to your Arizona commercial attorney to help you determine when a contract needs to be revised and how to do it.
What to Do When You Need to Create an Amendment to a Contract
There are several different options when you do need to modify a contract including red lines and strikethroughs, replacing a clause in its entirety or describing the amendment. If a contract is modified before it is signed, then these changes are not yet amendments. You need to consult with your Arizona business attorney to ensure that all of your contracts have legally binding language to protect you.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Tips for Modifying an Existing Contract, or any other litigation matters, please feel free to contact Roger C. Decker at 480.461.5343, log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.