An agent appointment contract is a legal agreement between a principal and an agent, where the principal authorizes the agent to perform certain services on their behalf. Sometimes the circumstances or the needs of the parties may change after the contract is signed, and they may wish to modify some of the terms or conditions of the contract. For example, they may want to extend or shorten the duration of the contract, change the scope of services, adjust the fees or commissions, or add or remove parties. In such cases, they can amend the contract by following a proper procedure and drafting a clear and concise document that reflects the agreed changes.
What is a Contract Amendment?
A contract amendment is a written document that modifies an existing contract by changing, adding, or deleting some of its terms or provisions. A contract amendment does not replace the original contract, but only affects the specific parts that are amended. All the other parts of the original contract remain valid and enforceable.
A contract amendment is different from an addendum, which is a document that adds new terms or provisions to an existing contract without altering the original ones. An addendum is usually used to provide additional information or clarification to the contract, such as definitions, schedules, annexes, or appendices.
A contract amendment is also different from a contract variation, which is a term that is sometimes used interchangeably with amendment, but may have a different meaning depending on the context and the jurisdiction. A contract variation may refer to a change in the performance or the outcome of the contract, rather than a change in the terms or the provisions. For example, a contract variation may occur when a party agrees to accept a different quality or quantity of goods or services than what was originally agreed.
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When to Amend a Contract?
A contract should be amended when the parties mutually agree to change some of the terms or provisions of the original contract, and when the change is significant enough to warrant a formal document. A contract amendment should not be used for minor or trivial changes, such as correcting typographical errors or updating contact details, which can be done informally by a written notice or a confirmation email.
A contract should also be amended when the change is required by law or by a court order, or when the change is necessary to avoid a breach of contract or a dispute. For example, if a new regulation affects the validity or the legality of the contract, or if a force majeure event prevents a party from fulfilling their obligations, the parties may need to amend the contract to comply with the new situation.
How to Draft a Contract Amendment?
The process of drafting a contract amendment may vary depending on the nature and the complexity of the change, but generally it involves the following steps:
1- Identify the Contract and the Parties
Identify the contract that needs to be amended and the parties involved. The contract should be clearly identified by its title, date, and parties, and the amendment should be made by the same parties or their authorized representatives.
2- Specify the clause or the section that needs to be amended and the reason for the amendment
The clause or the section should be referenced by its number, letter, or heading, and the reason for the amendment should be briefly explained.
3- Provide new or revised language
Provide the new or revised language for the amendment and indicate how it differs from the original language. The new or revised language should be clear, concise, and consistent with the rest of the contract. The difference from the original language should be highlighted by using strikethroughs, insertions, or replacement phrases. For example, “Section 3, paragraph 2, which reads ‘The agent shall receive a commission of 10% of the gross freight’ is hereby replaced with ‘The agent shall receive a commission of 15% of the net freight’.”
4- State the Effective Date and the Validity of the Rest of the Contract
State that the amendment is effective as of a certain date and that the rest of the contract remains unchanged and in full force and effect. The effective date of the amendment may be the date of signing, a retroactive date, or a future date, depending on the parties’ agreement. The statement that the rest of the contract remains unchanged and in full force and effect should be explicit and unequivocal, to avoid any ambiguity or confusion.
5- Sign and Date the Amendment and Attach it to the Original Contract
The amendment should be signed and dated by all the parties or their authorized representatives, in the same manner and with the same formalities as the original contract. The amendment should be attached to the original contract and kept together as one document.
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How can the Notary Public Dubai help you?
A drafting lawyer at Notary Public Dubai can help you with drafting an amendment contract by providing the following services:
- Reviewing the original contract and identifying the clauses or sections that need to be amended
- Conducting legal research and analysis to ensure the amendment complies with the applicable laws and regulations
- Drafting the amendment in a clear and concise language that reflects the agreed changes and avoids ambiguity or confusion
- Notarizing the amendment and ensuring it is signed and dated by all the parties or their authorized representatives
- Attaching the amendment to the original contract and keeping it as one document
If you need assistance with drafting an amendment contract, don’t hesitate to contact us.
Hassan Humaid Al Suwaidi is a UAE Citizen and the founder of the firm HHS Lawyers. He has a vast experience of 20 years of dealing with high-value and complex notary requirements. Hassan has been involved in some of the largest legal settlements in the UAE and is commended for his ability to attain the most favourable outcomes for his clients.
