Variation Agreement Vs Amendment Agreement

Tracking all elements of the contract, including additions and modifications, can be a logistical and compliance challenge. The lack of neglected supplements or changes can have significant consequences for businesses. In a recent Supreme Court decision[1] when one party claimed that an agency agreement had been amended to reduce the agent`s commission from 60% to 40%, one of the reasons the Court refused to implement the alleged amendment, namely that the agent did not receive consideration for the reduction of the commissions. If you take the extra time to address these issues, you can avoid future challenges or questions about the applicability of treaty changes. However, until recently, there was some uncertainty as to the binding nature of these clauses. Despite the clear wording of these variation clauses, they would have led to conflicting decisions of the English court. In one case, the Court of Appeal found that the parties could change their agreement orally orally or by conduct, even though the agreement expressly stipulates that the amendments must be made in writing. In essence, the Court held that, when they agreed orally to amend a substantial part of their agreement, the parties also tacitly agreed that the “written amendment” clause no longer applied. However, following a Supreme Court decision in May 2018, this approach is no longer a right. Now, the parties may have more confidence that the courts are likely to maintain this provision if their contract says it can only be amended in writing.

However, there may be limited exceptions where one party relies on the other party`s assertion that an oral amendment is valid regardless of the existence of such a clause. In such cases, the Estoppel doctrine may prevent the party from “modifying s.a.” – The application of the clause. If the change is made according to the appropriate procedure, there is no need to change the actual contractual terms. It is therefore not necessary to demonstrate that the effectiveness of this amendment has been taken into account. Parties should carefully review a contract and review all provisions relating to how amendments are to be made and ensure that these instructions are followed. Use a supplement to add information that was agreed after the parties agreed on the terms of the contract. In the case of .B a real estate contract, a supplement can be used to add a spouse as a co-owner to a sales contract. Changes to a construction contract are usually made by written agreement between the parties and are changes to the contractual provisions that do not include the scope of the work to be done. Tip 3: Confirm who should accept variations and who can sign a variant But for this variant to be effective, it must be: Our courts have been asked to determine this issue and the basic case by defining requirements that the parties must meet to validly amend a written agreement by electronic correspondence, Spring Forest Trading 599 CC v Willbery (Pty) t/a Ecowash and another [2015] JOL 32555 (SCA).