The process of managing contracts is dynamic. New requirements frequently surface when a contract is completed. Assume your partner asks you to complete extra work, maybe more than once. Is it sensible to negotiate a brand-new contract each time? Most likely not, mainly if it’s complicated and includes several parties. A supplementary agreement is helpful in this situation. We’ll explain what a supplementary agreement is and how to draft such agreement.
A supplementary agreement is frequently used to modify the service description, scope, duration, or price specified in a contract and to authorize these modifications. It is also helpful when stakeholders desire to keep utilizing goods or services after the contract’s expiration date. The parties may refer to the original contract and set a new end date in a supplementary agreement rather than drafting a similar contract from the start. You’ll probably run upon the concept of a contract modification if you read about supplementary agreements. Similar situations call for the adoption of a contract modification, but the two papers are different. Let’s examine how.
You may want to know: Side Agreement Drafting And Notarization
A supplementary agreement is a separate document that updates the terms of the contract, as opposed to a contract modification, which is the main distinction between the two. The initial Agreement is still in force.
Contrarily, a contract amendment entails updating or altering a few key provisions of the primary contract. The amended Agreement is after that approved, examined, and signed by the original parties. As a result, supplementary agreements are independent legal contracts that have certain similar portions.
Depending on the needs of the signatories and the underlying contract’s characteristics, supplementary agreements can have different structures and contents. However, specific provisions are present in the majority of supplementary agreements. Following are some of the provisions which need to be considered at the time of supplementary Agreement Drafting:
The definitions of terms and idioms used in the Agreement are set out in this Section.
It relates to the specific clause(s) being modified or added and, as the name implies, includes alterations to the principal contract.
It states that a notification clause in the prior Agreement should be the basis for all notices about the supplementary Agreement.
This clause attests to the fact that every party signs a unique copy of the same contract. It further states that the additional Agreement is binding once each party has signed at least one document.
It specifies the applicable legislation and the dispute resolution procedure, which usually refers to the same part of the principal contract. As seen above, a supplementary agreement is a complete contract with distinct portions. It demonstrates that all contract changes are legally lawful.
Also read about: Collaboration Agreement Drafting And Notarization
It is customary for parties to desire to change the parameters of their relationship between the effective date and the termination date of a contract. Thus, supplementary agreements are frequently made during this period. A supplementary agreement is commonly utilized to add additional requirements to a contractual partnership. A supplementary agreement, for instance, might be made to add receiving more products or doing more work to an existing contract.
An established contract may benefit from supplementary agreements that give more clarity. One such illustration of this is the employment of a supplementary agreement to provide further specifics about what material is covered by the terms of an existing non-disclosure agreement.
Adopting a supplementary agreement that involves little work on both parties’ part is one of its most evident advantages. Creating a supplementary agreement allows parties to make a much shorter agreement rather than having to rewrite the entire contract from the beginning. It takes less time and money.
Supplementary agreements also provide contractual parties more freedom. With the approval of all parties, it is so that they may subsequently add to or modify the terms. Although delivering certainty and security is one of a contract’s primary goals, the flexibility offered by a supplementary agreement can be helpful in situations where the demands of both parties vary over time.
Also want to know: Partnership Agreement Drafting And Notarization
Supplementary agreements may be legally binding and ultimately enforceable, in the same manner as ordinary contracts, to the extent the primary contractual conditions have been satisfied. It implies that, even if the supplementary Agreement only marginally modifies the terms of a contract, the parties that agree to it will be bound by the changes. An offer, acceptance, consideration, and contractual capability must all be included in a supplementary agreement, just as in other contracts.
A notarized document is it admissible in court? The contract can be signed securely by having the paper notarized, but even without a notary, it will still be enforceable in court. The document’s language must be carefully chosen since it must contain all necessary terms.
Writing contracts and other legal papers are part of contract drafting. Contracts are written agreements with terms and conditions and other clauses that have legal force. While poorly written contracts may have unanticipated legal repercussions, well-structured ones may enable successful and secure commercial operations. If you disagree with the opposite party, poorly worded contracts will cause further issues. Make sure you choose the appropriate contract for the circumstance, and whenever you have more complex questions, always seek legal counsel. Instead of being sued for unwanted terms and conditions in your document, use this method. Want a simple way to maintain and change your contracts?
Notary public Dubai assist with creating, carrying out, and managing contracts in a single collaborative workplace. For further information, 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.