Why do you need a deed of variation template?
The basics: This deed of variation template can be used to vary the terms of an existing agreement. It allows parties to change a part or provision of a contract with their express, written consent (i.e. through the signature of the new ‘varied’ document).
Avoid entering into a brand new agreement: Rather than entering into a brand new agreement, it may be preferable to vary the existing agreement so that only certain terms are being amended, replaced or deleted. For example, you may wish to extend the term of the agreement before it expires, but want the remaining existing terms to stay in effect as they still apply to the relationship under the agreement. A deed of variation could be used to vary and extend the term of the existing agreement, rather than entering into a new one.
Variations must be in writing: It is often a requirement of an agreement that it can only be varied where such variations are agreed in writing between the parties, and there may be a clause in the original agreement to this effect. The deed of variation template will allow the parties to document the variation in writing.
What is a deed?
Deed vs contract: A deed is a written and signed document that does not require consideration, e.g. the exchange of money for value, in order to still be legally binding. In contrast, in order to bring legal effect to a contract, the parties to the contract must exchange consideration (i.e. money or other value), and if it is not considered sufficient the contract could be found to be invalid under English law.
What if there is no consideration: Where an amendment is required to an agreement, often there is no additional consideration to the original agreement being varied and the requirements for a contract formation cannot therefore be met. In these circumstances, the act of using a deed will ensure that the variation is still binding, even where no consideration is being provided. The deed of variation template, therefore, overcomes any issues with no consideration, and still allows for an agreement to be varied.
What if the original agreement is a deed: If the original agreement that is being varied is a deed, a deed of variation should be used to vary it (rather than a simple contract, such as a letter form of variation). Simple contracts can be varied by either a contract or a deed.
When should you use this deed of variation template?
You should use this deed of variation template when you wish to vary a commercial contract and you are able to vary the agreement in writing in accordance with the original agreement’s terms.
You should not use this deed of variation template when you wish to vary a property agreement.
This deed of variation template assumes that the parties are incorporated in the UK, and that English law applied to the original contract, and applies to this deed. This document also assumes that there are no third party guarantors which may be required to give consent to the variation (i.e. where there is a separate guarantee in place in respect of the original agreement).
Why Docue?
With Docue, you can create a top-quality document in minutes using this deed of variation template. The service includes model clauses designed by business lawyers to help you draft the contract yourself and tailor it to your needs.
Signatures can be collected electronically, and all contracts you make are saved in your company's own contract account.
Tags: deed of variation template, deed of variation of agreement, variation agreement, variation agreement template, contract amendment
