Contract-Amending Agreements

An amendment modifies an agreement.

Once a contract is signed, it is considered a legally binding agreement. In some instances, however, the agreement needs to reflect certain changes. A contract can only be changed by amending the original agreement.

Types

Amendments are made to contracts by agreement of the signing parties as well as by written documentation. There are three ways a contract can be amended. A clause within the agreement can be completely removed and replaced; a "strikethrough" may be drawn through the incorrect statement within the agreement and the relevant statement added; or a phrase may be added to the contract to describe the necessary changes.

Significance

Amending a contract is important to protect the rights of the signing parties. If each party verbally agrees to something that is prohibited in the original contract, an amendment is a method of documenting the agreement to avoid future disputes over the matter.

Considerations

A contract can only be amended after it is signed. If a contract is modified before it has been signed, it is not considered an amendment but a part of the original document. Misspellings and typos are reasons to change a contract before it is signed without modifying the entire agreement.

References

• Nolo Legal Information: Amending an Existing Contract