Understanding the Meaning of Contract Amendments

Have you ever thought about ‘amend contract meaning’? It’s a hot topic right now, especially since it’s becoming more common for contracts to be amended or cancelled altogether. This leaves plenty of room for misinterpretation, and UGM students are no exception. Sometimes, students just don’t understand the meaning or implications of a contract, which can affect their experience in their studies. Fret not though because, in this article, we’re going to help decipher the elusive ‘amend contract meaning’ and make it way more relatable for you in an entertaining fashion.

Contract amendments or voidancy of contract are terms you probably already know. And if you’ve recently signed a contract recently, you should get acquainted with ‘amend contract meaning’ too and why they are so important.

So first of all, what does it mean to ‘amend contract meaning’? Well, amending means you are correcting a mistake or an error. In contract terms it means that the terms of the contract are no longer valid. It could be a minor amendment like the name of the company or it could be a bigger one like the validity period. But if a contract is amended then it basically becomes new, so it’s really important it’s done correctly.

As contract amendments are becoming more commonplace and are being used in everyday student life (meaning everyone is doing it!), students need to understand the amendment concept more. But more importantly, they need to understand all of the terms and conditions. Why? Well, because if you don’t, then you won’t understand the implications of what holding a contract means and whether or not it’s safe for you to sign it and consent to.

You may encounter contract amendments in these situations:

• When entering into new agreements
• During negotiations for changes in terms
• When addressing errors in the original contract

The basic procedure for amending a contract position is:

So basically, if you have the ability to amend the contract as a party, or companies/people/entities are allowed to amend the contract, then most likely the contract allows you to do this. But, when an amendment happens, it doesn’t mean the whole contract is amended just the explicit terms that you agree to amend. So it’s important whenever an amendment is made, that both parties re-read the amended contract at least once and then sign off on the contract. It’s a good way to double check that your understanding is still valid.

If you are re-negotiable and re-amending a contract way than it means that there is something wrong with the first contract as it was originally written and signed. So the previous contract is no longer valid – however, it may be a void contract in the first place or it could have been signed under duress.

Companies will sometimes do this to prevent a future dispute and to allow the parties involved time to negotiate their agreement with each other or the company. Even as a student, you will sometimes find yourself doing this, only usually as a payment plan.

Amendment clauses are also common clauses that companies use to change their costs for services/fees/rates. Then this clause just states that the contract agreement is subject to amendments from the service provider and that the party/parties will be notified of any changes to their costs. However, the service provider must notify you of their rate change, and you always have the ability to decline any contract amendments.

So remember how we talked about the secret contract handshake where you don’t know what the terms and conditions are until after you’ve signed them? Well, the same goes for contract amendments. You always have the ability to amend a contract, but you also have the ability to decline the amendment and even request the original contract to be reinstated. And by reinstated, it won’t be the original contract; it’ll actually be a New Contract that acknowledges that the previously proposed contract, and its amendments, were never amended.

Amendments must be recorded in writing, meaning any additional textual or graphic information has to be attached to the contract as an amended contract. The amended contract must be reviewed and signed off by all parties involved. And each party involved with the contract must personally receive a copy of the amended contract.

Sometimes it’s best to ask, which is why you should get in the habit of asking for clarification from your teachers or company representatives whenever you come across a legal term or condition in a contract that you don’t understand. So don’t be shy!

So even though it’s important to understand that not all contracts are equal; it’s also important to understand that sometimes even in contract re-negotiation parties might forget to clarify terms or conditions. Or they don’t have the same understanding of those terms or conditions. So contract amendments aren’t just a fresh start/reset, they can often highlight future problems or disputes which have already occurred. So always take the time to read through a contract before you sign it, especially if you’re making an edit or an amendment of a contract.

It’s really important to understand whether it’s void or amended so that you can allow yourself time to re-negotiate the contract and you’ll feel happier with the final outcome.

Did you know UGM offers courses to study contract law and business law? That’s right! Make sure you sign up for that in your next semester of law class as there are some really interesting things that will come up which compare the shadowy world of stern business contracts and amendments with the life of a creative student.

Learning about contract amendments isn’t just limited to courses either. If you want to learn more about contract law, or amendments, there are heaps of online courses you can take. Or you could ask your friends or peers about their understanding of contracts – if you attended high school together then you probably signed similar contracts and you’ll feel reassured knowing that you too, are not alone in your confusion.

According to the in-depth guide on comprehensive contract amendment meanings, we’d love to know in the comments section below if you’ve experienced the nightmare of contract amendments and how you dealt with them!