Contracts, both oral and written, are the foundation of many, if not all, business relationships, as they define the expectations, responsibilities, and rights of all involved parties. Over time, and due to the dynamic nature of the business world, there are situations where contractual amendments become necessary to redefine a parties’ duties and obligations. Amendments refer to alterations that significantly affect at least one party’s rights and obligations under a contract. Contract Amendments can introduce significant shifts in the obligations and benefits initially agreed upon between the parties, resulting in unexpected and unwanted consequences. Therefore, it is crucial that you understand the types of modifications that could significantly impact your contract and how to handle them.
How Contract Amendments Impact Business Relationships
Amendments may include alterations in payment terms, shifting of responsibilities or changes in the timeline for deliverables. These revisions can substantially alter the balance of the contract, ultimately favoring one party over the other. When presented with any contractual amendment, it is important to review each amendment thoroughly and to seek legal advice to understand the full implications of the amendments and changes contained therein. Doing so not only protects you and your business relationships moving forward, but sets you and your business up for success.
Your Attorney Can Protect You
At its core, a contract is an agreement between two or more parties, so any revisions or amendments will only become effective after mutual consent of all parties involved. When presented with revisions or amendments by the other party, an attorney is the best person to call to explore the pros/cons of the proposed changes; the short and long term repercussions of the changes; and whether the amendments are enforceable and, if so, to what end. Thus, it is crucial to have an attorney review any proposed amendments before you sign.
Arnett Law Group, LLC provides a variety of services to cater to all your contractual needs. Contact our office at (312) 561-5660 for more information or review our website at www.arnettlawgroup.com.
June 27, 2023
