A variation in a contract means making changes to the original terms of the agreement. Sometimes, after a contract is signed, one or both parties may realize they need to change certain details. These changes are called variations and can include things like extending deadlines, changing prices, or adding new conditions.
Why Do Contracts Need Variations?
Contracts are meant to protect both sides and outline their responsibilities. But things don’t always go as planned, and sometimes changes are needed. Variations happen for many reasons, such as:
Delays: A project might take longer than expected.
Changes in costs: Prices for materials or services might go up or down.
New requirements: One side might need extra work or services not included in the original agreement.
Variations help keep the contract fair and up-to-date when circumstances change.
How Can a Contract Be Varied?
A contract can’t just be changed randomly. Both parties must agree to the variation. Here are common ways to make changes:
1. Written Agreement
The safest and most common way to vary a contract is by writing down the changes and having both sides sign it. This avoids misunderstandings and makes the variation official.
2. Verbal Agreement
Sometimes, people agree to changes verbally. While this might be quicker, it can lead to confusion later because there’s no written proof. Verbal agreements might not always hold up in court.
3. Implied Agreement
If both sides act in a way that clearly shows they agree to the change, this is called an implied agreement. For example, if a contractor keeps working past a deadline and the client continues to pay, it implies both sides have agreed to extend the contract.
Rules for Variations
To make sure variations are legal and enforceable, they need to follow certain rules:
Agreement from Both Parties:
Both sides must agree to the changes. One side can’t just change the contract on their own.
Consideration:
Something of value must be exchanged, like additional payment for extra work.
Follow Contract Terms:
Many contracts include a clause saying how changes should be made, such as requiring written approval.
Not Against the Law:
Changes must comply with the law. For example, you can’t change a contract to include something illegal.
Examples of Contract Variations
Here are a few examples of how contracts might be varied:
Construction Contracts:Adding new features to a building project might require a variation to cover extra costs and time.
Employment Contracts:An employee’s role might change, requiring a variation to their contract to reflect new responsibilities or salary adjustments.
Supply Agreements:A supplier might agree to deliver more goods than originally planned, which would require an update to the delivery schedule and pricing.
What Happens If a Variation Is Disputed?
If one side doesn’t agree to the variation or believes it’s unfair, the disagreement can lead to a dispute. To avoid problems:
Make sure all changes are clearly written and signed by both parties.
Keep records of any conversations or agreements about the variation.
If a dispute arises, it’s best to seek advice from a contract lawyer to resolve the issue.
How Canko Law Firm Can Help
At Canko Law Firm, we help businesses and individuals with all aspects of contract law, including variations. Our services include:
Reviewing your contract to ensure changes are valid.
Drafting written variations to protect your interests.
Resolving disputes about contract changes.
Variations in contracts are a normal part of doing business. They allow agreements to adapt to changing circumstances while keeping things fair for both sides. However, it’s important to handle variations carefully by getting proper agreements in place.
If you need help managing contract variations, contact Canko Law Firm today. We’ll make sure your contracts are clear, enforceable, and work in your best interests.
