Can a business contract be amended?

Can a business contract be amended?

On Behalf of | Nov 29, 2022 | Business Law |

Contracts rule the business world. Without an effective contract, there would be no clarity regarding each party’s rights and responsibilities. And this would be a recipe for costly yet unnecessary disputes. 

But contracts are not cast in stone. Sometimes, a contract may be amended to suit the changing business circumstances and needs. It is important to note that a contract amendment is just as crucial as the original contract creation process. Thus, any amendment to the contract must be treated as part of the agreement. 

Why would a contract amendment be necessary?

Waivers are not uncommon in the business world. However, if a business situation requires waivers time and again, then the best course of action would be to amend the existing contract. Such amendments would replace or reinforce specific provisions without necessarily overhauling the entire contract. 

Sometimes, certain aspects of the contract may fail to work as planned, thus, limiting the parties’ abilities to live up to their responsibilities. Still, external forces outside of the business’ control can necessitate an amendment to the contract. A good example would be a change in state or federal law. In both instances, an amendment to the existing contract would be inevitable. 

Best practices when amending a business contract

Business contracts are crucial, and so are any amendments to them. For any amendment to go on successfully and deliver the intended outcome, it is vital to follow certain guidelines during the amendment process. Here are some of the best practices that you may need to take into account when amending your business contract:

  • All the parties must be actively involved in the amendment exercise. 
  • The amendment must be done in writing and attached to the original version of the contract
  • The amendment must be titled, dated and signed by both parties to become legally enforceable. 
  • Keep amendments as minimal as possible

A business contract amendment should never be taken lightly. Find out how you can protect each party’s rights and interests while amending a business contract.