What is Contract Amendment Review?
A contract amendment is a formal change to an existing contract after it’s been signed. It edits, adds, or removes certain clauses that don’t apply to the arrangement for which the contract was drafted, without requiring a new contract to be drawn up from scratch.
Once you have your contract amendment, you should review it to avoid ambiguity that can result in disputes. Read the rest of this article for tips on the key terms to review in an amendment and how a lawyer can assist you with an in-depth review that protects your interests.
What Key Terms Should You Review in a Contract Amendment?
A contract amendment needs a few essential terms to be legally valid and enforceable.
- Refer to the original. The agreement must clearly state the date and parties of the original contract being changed.
- Effective date. For clarity, your agreement must have a new date on which changes to the contract will take place.
- Changes. Explain all the clauses that need to be modified or removed.
- Continuity clause. To protect you during future disputes, you should state that the other terms in the original contract are effective and remain in full force.
- Signatures. It’s essential for the contract amendment to have a section where parties can sign and date the document. This serves to make it legally valid.
How Do You Review a Contract Amendment?
It’s important to review a contract amendment because missing certain requirements can make it less enforceable. Here are some things to look out for during a contract amendment review.
Check that Changes are Clear
You want the amendment to provide clarity over exactly what clauses are going to be changed. Here, you should refer to the exact clause or section number in the original document so that people reading the amendment can check it.
Revise Strike-Throughs for Complex Changes
While strike-through redlines can help to indicate what should be changed or removed in the document, they can become messy, especially if there are lots of changes. Avoid them when reviewing complex documents.
Include a Supplemental Agreement
It can be useful to include a short attachment document to explain all changes to the original document. This is especially beneficial if your changes are complex or there are many modifications.
If this supplemental document has been provided with the contract amendment, double check that it’s aligned with the original contract to prevent contradictions.
Quote the Original Text
Another way to make changes to the document clear to both parties is to quote the text that’s going to be replaced before adding the new text.
Check the Signing Rules
To ensure legal validity, you should refer to the original contract for information about which parties need to approve the amendments.
Look Over New Restrictions
You should review the entire document as there could have been new restrictions added to the contract amendment. These include non-compete or confidentiality provisions. Checking them carefully ensures that they’re reasonable and fair.
Ask Questions Prior to Signing
Although the changes to the document might not seem serious, it’s always worth taking the time to question them so that you ensure they’re not vague or filled with hidden risks. Query anything you’re unsure of with the other party before going ahead with signing the contract.
Do You Need to Hire a Lawyer to Review a Contract Amendment?
While you don’t always need to hire a lawyer to review your contract amendment, it’s valuable in certain situations, such as if you’re making changes to significant clauses related to fees or financial obligations. Other reasons include:
- You’re extending the duration of the contract or amending parties’ termination rights.
- You’re making changes to intellectual property and confidentiality provisions.
- You’re modifying control of assets or your business.
A lawyer can help you in various ways when reviewing your contract amendment, such as:
- Comparing the amendment to the original document so that all changes are clear and specific.
- Identifying hidden risks, such as provisions that could result in financial or legal obligations.
- Explaining legal language or ambiguous clauses so that there’s clarity.
- Checking for any conflicts between documents to prevent disputes.
- Evaluating your obligations and rights so you know exactly how the modifications affect you.
- Reviewing all financial terms to prevent ambiguity or payment concerns.
- Ensuring that the contract amendment is properly executed.
- Advising on all legal obligations, such as what laws could affect the contract amendment.
- Helping you to make decisions. A lawyer will explain all potential consequences you could face by making these changes, so you feel confident when signing the document.
Where to Find a Lawyer for Contract Amendment Review
If you need to hire a lawyer to review a contract amendment, you don’t have to worry about where to find one. On online legal platforms, you can access a network of qualified lawyers who are experienced to help you.
ContractsCounsel is one of the largest online legal marketplaces that enables you to connect with a curated network of vetted lawyers. All lawyers on the platform have years of experience in contract drafting and review.
To request that a lawyer on the platform reviews your contract amendment, here are the steps to follow:
- Go to the ContractsCounsel marketplace.
- Post your project for free. Include a few details to help you find the most suitable lawyer, such as the reasons for your contract amendments.
- Receive multiple bids from lawyers directly on the platform who have the experience to help you.
- Review the lawyers’ profiles. Take some time to go through the platform’s lawyer data, such as their location, client ratings for previous projects, expertise, and credentials.
- Connect with a lawyer you think is best suited to your requirements and hire them to review your contract amendment for a flat fee.
