During the existence or term of a contract, a number of events may take place which mean that the contract needs to be managed or changed in some manner.
The management or change to the contract could arise for a number of reasons, including:
- change to the parties: a change to the parties to an agreement may occur for a variety of reasons. The change can be structured as either the assignment or novation of the agreement. The reasons for the change include:
- the sale by one of the contracting parties of its business, which includes the benefit of that contract
- an intra-group corporate reorganisation
- change to the terms: the parties to a contract may negotiate new or different terms for their agreement. This might be due to a change in circumstances which result in the parties agreeing new terms or perhaps a change which is negotiated following one party not being able to comply with the original agreement. The changes might include:
- price: change to the price payable under the contract
- time for performance: change to the time by which a party’s obligations are due to be performed
- term: an extension to the duration of the agreement
- other contractual terms: one or more changes to other contractual terms
- termination of the agreement: the parties may agree to bring an agreement to an end earlier than originally envisaged
This section includes a number of different documents that, in light of future events and circumstances, may become necessary from time to time during the life of a contract.