Amending an Agreement by Deed: What It Is and How It Works
When parties enter into a binding agreement, it is not uncommon for circumstances to change or for new issues to arise that were not initially considered. In such cases, it may become necessary to make changes or modifications to the original agreement. This is where the process of amending an agreement by deed comes into play.
What is an Agreement by Deed?
An agreement by deed is a legal document that is executed in accordance with specific formalities, such as being executed in the presence of witnesses or being notarized. This type of agreement is used for transactions or situations that require a higher level of legal formality, such as the transfer of property or the creation of a trust.
In contrast, a simple contract can be formed through an exchange of emails or even a verbal agreement. However, when it comes to amending an agreement, a more formal process is usually required, which is where an agreement by deed comes in.
Amending an Agreement by Deed
If the parties to an agreement wish to make changes or modifications to the original agreement, they can do so by executing a deed of variation. This is essentially a document that sets out the changes to the original agreement and is executed in the same way as the original agreement.
However, it is important to note that not all agreements can be amended by deed. For example, if the original agreement requires that any changes or modifications must be made in writing and signed by both parties, then a deed of variation may not be appropriate.
Benefits of Amending an Agreement by Deed
One of the key benefits of amending an agreement by deed is that it provides a higher level of legal certainty and formality. This can be particularly important when dealing with complex transactions or when significant sums of money are involved.
Additionally, a deed of variation can help to avoid disputes or disagreements that may arise if the parties attempt to make changes to the original agreement without following the proper formalities. By executing a deed of variation, the parties can be confident that the changes are legally binding and enforceable.
Conclusion
In summary, amending an agreement by deed is a formal process that can be used to make changes or modifications to a binding agreement. By executing a deed of variation, the parties can ensure that the changes are legally binding and enforceable, and avoid the potential for disputes or disagreements. If you are considering amending an agreement, it is important to seek legal advice to ensure that the process is carried out correctly and in accordance with any relevant legal requirements.