Did You Know? Amending Contracts - Tips To Avoid Common Mistakes

Key Point

• Varying a contract requires planning and needs to be tailored to the particular circumstances.

It's not unusual for parties to want to vary the terms of an existing contract. There is not one single way to vary a contract that will work in all circumstances. Letter agreements won't always work. Deeds are not always required. Sometimes, a handshake is enough.

Varying a contract takes a little effort to make sure you get it right. By failing to get it right, the variation may be ineffective and the original terms of the contract could continue to apply, potentially with unwanted effects. A variation is, at law, a contract in itself. It must therefore meet all the requirements of any contract.