Varying 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 or terminated, generally speaking 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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