Contract Amendment Definition: Everything You Need to Know
Contract amendment definition refers to making modifications to, correcting, deleting from, or adding to an existing contract proposal after an initial bid.3 min read
2. Will an Amendment be Issued for a Bid?
3. What Can be Included in a Contract Amendment?
4. Who Tracks Contract Amendments?
5. When Does a Real Estate Purchase Agreement Become a Binding Document?
6. What Are Sample Scenarios When a Contract Amendment Is Needed?
7. What Is an Addendum?
8. Do You Need a Legal Counsel to Draft an Addendum?
9. Steps to Write an Amendment To a Contract
Contract amendment definition, also known as contract addendums or revised contracts refers to making modifications to, correcting, deleting from, or adding to an existing contract proposal after an initial bid.
When Are Contract Amendments Issued?
The issuance of contract amendments takes place after some days or months from the date when an initial bid was issued.
Will an Amendment be Issued for a Bid?
The type of contract determines whether an amendment can be issued for a bid. While some bids don't have any amendments, others may have multiple amendments.
What Can be Included in a Contract Amendment?
The following can be added to an amendment:
- A change of the proposal's due date.
- A change in the project specifications.
- A Q&A segment to answer inquiries made by vendors.
- A change in the language of the proposal.
- Including a pre-proposal meeting.
- A change in the requirements for project bidders.
Who Tracks Contract Amendments?
It is the responsibility of vendors who are interested in the bid to track it.
When Does a Real Estate Purchase Agreement Become a Binding Document?
A real estate purchase agreement becomes binding when it has been executed, and the contracting parties both accept the terms of the contract.
Where the parties seek to change certain terms of the existing agreement, they draft an amendment to modify the already executed contract.
What Are Sample Scenarios When a Contract Amendment Is Needed?
For example, a seller and buyer sign a contract after agreeing on the sale of a building. However, the need for an updated survey of the property made it necessary to change the closing date. For this to happen, an amendment must be made to the original agreement.
Appraisal: An appraiser presents a value which is lower than the selling price that was agreed upon. If the value is small, the seller may agree to reduce the price or the buyer can increase the down payment. But if the amount is big, they have to hold new negotiations, and the contract amended to reflect changes regarding the original document.
What Is an Addendum?
An addendum is a legal document written to correct certain details in an original contract. It is mostly used for making minor changes, but can also be used to change major terms of a contract. Note that an addendum is not a replacement of the original document.
Do You Need a Legal Counsel to Draft an Addendum?
Anybody can prepare a simple addendum, but an attorney may be required if what needs to be changed is critical to the success of the contract, there is a risk of losing money, or the contract in question is highly important.
Steps to Write an Amendment To a Contract
The following steps are involved in writing an amendment:
- The first step is to go through the contract you intend to amend and mark the terms that you want to change, add to, or delete.
- Open a new blank document named "Amendment to Contract" and choose any format or styling you like, preferably the same as the original contract.
- Indicate the contract which the addendum seeks to amend. For example, if you are drafting an addendum for a sales commission contract between Company A and John Bull dated October 2, 2017, the first paragraph of the addendum should be " This amendment is made between Company A and John Bull, parties to the sales commission contract dated October 2, 2017 ("The Original Agreement")."
- Write down the items you wish to delete from the original contract using Palin wording like "item 5 of the Original Agreement shall be deleted."
- Give a detailed description of the clauses you wish to change in the original article. You can also copy the item and strike through the old wordings and show the new wordings with bold text.
- If you wish to make long modifications, delete the old item completely and replace with a new one. For example, write "item 25 is replaced in its entirety by the following:" and then include the new clause.
- If you wish to include new items, write: "The following items shall be added to the Original Agreement" and then write in the new items.
- Show in writing the validity of the original agreement.
- Add space where both parties will sign and print their name and official titles such as General Manager.
- Check for errors, print the addendum and forward to the contracting parties for signing and dating.
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