Amendment

What Is an Amendment? An amendment is a formal change to an existing legal document, contract, or agreement. Rather than creating an entirely new document, an amendment modifies, adds to, or deletes specific provisions while keeping the remainder of the original agreement in effect. Amendments are widely used in business, employment, and real estate to update contracts as circumstances change. ## Common Reasons for Amendments - Extending or shortening the term of the agreement - Modifying payment terms, pricing, or scope of work - Adding or removing parties to the agreement - Updating provisions to comply with new laws or regulations - Correcting errors in the original document - Adjusting performance milestones or delivery schedules ## Requirements for a Valid Amendment To be enforceable, an amendment generally must comply with any amendment procedures specified in the original contract (many contracts require written amendments signed by all parties), be supported by consideration (something of value exchanged), and be agreed to by all parties to the original agreement. Oral amendments may be enforceable in some cases, but most contracts include a provision requiring all amendments to be in writing. The amendment should clearly identify the original agreement, specify which provisions are being changed, and state the effective date of the modification.