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An amendment contract is a formal and official change made to a legal document or contract. The word amendment is based on the verb to amend, which means to change for better. An amendment may update, remove, and add parts to an existing agreement. It is often used when it's better to change the existing contract rather than to create another one. In other terms, an amendment contract may also be referred to as an alteration since it alters the existing document. In an amendment contract, both parties involved should agree to the revision and changes that are going to happen.
Written contracts play a vital role in everyday negotiations. Along with the importance of a written contract is the contract amendment which is usually applied if there are certain provisions in the contract that needs to be changed or addressed. All forms of negotiations where a contract is involved may be amended such as employment contracts, residential lease, purchasing and partnership agreement contracts, construction agreement, and services contract. In general, contracts are considered legal documents, which only means that it needs to be formal and credible. We have provided a simple step-by-step guide below that might help you in your amendment contract making.
The first step to successfully make an amendment in the sample contract is to read and study it first. If possible, talk with both parties involved in the contract what needs to be amended and why does it need to be changed. Making amendments for legally binding documents such as this is not an easy task to do. You may opt to let both parties involved sign an amendment form in order to make the process formal.
When making an amendment contract, you have to take note of the basics. Amendment and addendum are commonly used terms in contract law. Basically, the amendment means any alteration or revision of an existing document. And contract addendum, on the other hand, does not fully change the contract, it only adds to it. Take note of this and don't be confused when using them for your simple contract making.
After successfully differentiating the important terms used in an amendment contract, it's now time to make the revisions. The best option to do this is to meet with both parties involved, talk with them properly what certain terms or provisions in the company contract do they wish to change. Take note of their concerns and keep them in mind while revising the contract.
Since an amendment contract is a formal document, you have to make sure that all the details and changes stated in it must be factual and true. Conduct proofreading to ensure correctness. Are all the needed changes made? If you're confident that you have done everything perfectly, you may now proceed to the last step.
After applying all the changes in the contract, it's now time to present it to your clients. Evaluate and review the formal document together with them, be prepared also to answer all their queries about the contract.