Amendment Agreement

What is an Amendment Agreement?

An Amendment Agreement is a document between parties to an original or existing contract, who want to change or revise some terms of the original agreement. The amendment agreement can be used to amend any contract such as a Supply Contract, Loan Agreement, Services Agreement, Residential Lease or Commercial Lease etc.

After execution of an agreement, over a period of time, parties to a contract may reach some revised understandings and instead of entering into a fresh agreement, they may only need to revise the original agreement.

If the changes are substantial, making it too complicated to read the two agreements together, it may be better to enter into a fresh agreement. However, if the changes are easy to specify by way of an amendment, an amendment agreement would be a good way to take them forward.

This document can be used when the parties are getting ready to revise the terms of an existing agreement such as deadlines, responsibilities, or financial arrangements without altering the entire contract.

What is the difference between an Amendment Agreement and an Extension Agreement?

An Amendment Agreement focuses on changing the existing terms or adding additional terms to the existing contract while maintaining the core content of the agreement. On the other hand, an Extension Agreement focuses solely on extending the duration or term of the agreement without making other major changes and is often less complicated.

Is it mandatory to have an Amendment Agreement?

No, it is not mandatory. However, having a written Amendment Agreement will help in clear understanding between parties and avoid any disputes in future.

Who can enter into an Amendment Agreement?

The person or entities involved in the original agreement or their authorized representatives sign the Amendment Agreement. The persons signing the Amendment Agreement must be above the age of 18 years and if signed by an authorized signatory, they must have a valid power of attorney or authorization document to sign the Amendment Agreement.

What can be the duration of an Amendment Agreement?

The duration of an Amendment Agreement is usually similar to the duration of the original agreement. The parties can also specify a reduced period for such amendments to be effective.

What has to be done once an Amendment Agreement is ready?

The Amendment Agreement will be legally binding when it has been printed on non-judicial stamp paper or e-stamp paper signed by all the parties to the original agreement and has been dated. The value of the stamp paper would depend on the state in which it is executed. Each state in India has provisions in respect of the amount of stamp duty payable on such agreements. Information regarding the stamp duty payable can be found on the State government websites.

All the Parties may keep a signed copy of the Amendment Agreement. In order to do this, different copies can be signed, or if only one copy is signed, it can be photocopied and then distributed between the parties. A copy of the Amendment Agreement must be attached to the original agreement for future reference.

Is it necessary to register an Amendment Agreement?

No, it is not mandatory. However, if the original contract is registered and is mandatory to be registered, the Amendment Agreement will only be valid once it is registered concerned sub-registrar.

What must an Amendment Agreement contain?

The Amendment Agreement must include the following clauses:

• Parties Involved: Name and Details of the parties to the original contract.
• Reference to Original Contract: Details of the original contract being amended.
• Specific Amendments: Clear and detailed description of the changes being made.
• Effective Date: The date when the amendment will take effect.

Which laws are applicable to an Amendment Agreement?

Amendment Agreements in India are subject to the Specific Performance Act, 1963 and the Indian Contract Act, 1872 which cover general contract principles like formation and mutual understanding.

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.