Generally, once parties have signed a business contract, they are expected to fulfill the agreed-upon terms. However, circumstances can arise where you may need to change an existing agreement. In that instance, you will need to know: How do I modify my business contract?
Your Florida Business Contract
Every day, thousands of Florida business owners, their clients, service providers, and vendors sign contracts for various goods and services. Depending on the needs of your business, you may use these agreements regularly or from time to time. When parties enter into a business contract, they commit to providing vital goods or services according to specific terms. Each side will rely on the other to fulfill the terms as promised. But what happens when one or both parties can’t comply as agreed and therefore need to modify an existing business contract?
Modifying an Existing Florida Business Contract
Florida business contracts are usually the product of careful negotiations. In theory, the contract terms will become final once the parties sign the agreement. However, in practice, there can be situations when a contract may be altered after it has been finalized. The ways in which you can modify an existing Florida business contract will depend on your circumstances and the terms of your agreement.
You may need to begin by asking questions such as: Is the other party going to agree to the modification? Is there a clause in the agreement that provides for this circumstance? Will I have to pay consequential damages for making the proposed change? In this situation, it would be in your best interest to work with an experienced Florida business attorney who can help you evaluate your business contract and determine your modification options.
Modification by Agreement
If both sides are willing, you can modify your existing Florida business contract by agreement. The modification may be possible because you and the other party have an amicable working relationship. However, these types of changes should not be left to a handshake. Instead, to protect your interest, any change you need to make to your existing Florida business should be in writing.
Once you and the other party have agreed to the modification, you will need to amend the contract or add new terms. As with your original agreement, any changes or additions will need to be carefully drafted.
Amendment or Addendum?
Depending on your goals, you may want a contract addendum or an amendment. An addendum allows the parties to add terms and provisions to the business contract through an attachment document. By contrast, an amendment permits those involved to change the language and provisions that are within the contract. Although the two may seem similar, they can have different implications when interpreted with the other contract terms.
It’s crucial that you understand what your change will mean within the broader context of your overall business contract. Therefore, you will want to work with an experienced Florida business lawyer before changing or adding anything to your agreement. Your Florida business attorney can help you develop the right language to make the necessary modification and protect your interest.
Modification When There is Not an Agreement
It can be complicated when a business owner enters into a contract with another party and needs to make changes. This can be especially true when the other side does not want to modify. If you fail to adhere to the agreement’s terms without modifying the agreement, you could be in breach of the contract. The best way to determine your options concerning your existing Florida business contact is by working with an experienced and knowledgeable Florida business lawyer.
Contact an Experienced Florida Business Attorney
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.