Side Letters - Not Just A Side Order

Recent legal developments highlight the importance of making sure a side letter to a document has all of the elements it needs to be legally binding, otherwise you could find that you have an expensive extra piece of paper which has no more than a moral effect.  

A side letter is a legal document used to clarify, supplement or vary an existing contract. Many people view them as simple documents but you should be aware that preparing a side letter is more complex than it seems and if not attended to correctly, could be ineffective, as illustrated by a recent legal case.

Why are side letters useful?

The common uses for side letters include:

• Providing clarification, such as when details become available which were not known when the contract was originally entered into;