How do I vary a contract

Useful for: Government, Local Government, Business

In Brief

  • A contract variation occurs when the parties agree to do something differently from that originally agreed (but the remainder of the contract remains unchanged).
  • Ensure you understand the extent of the variation and the need for it.
  • A variation must be mutually agreed by the parties (although in limited circumstances there may be an express right in the contract to a party to vary unilaterally).
  • The parties must comply with any requirements as to the form of the variation (this is usually set out in a contract’s ‘variations’ clause, or may be prescribed by law).
  • There is no single way to vary a contract that will work in all circumstances. Variations by exchange of letter or email won’t always work, but formal Deeds are not always required.
  • Once a contract has expired, it cannot be varied and a new contract is required.
  • Be especially careful if the contract you are varying is a Lease. Special considerations apply.

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