Alterations: Overview, definition, and example
What are alterations?
Alterations refer to changes or modifications made to an existing property, document, or agreement. In a business context, alterations typically involve changes to physical assets, such as buildings or equipment, or adjustments made to the terms of a contract or agreement. Alterations can range from minor adjustments to major renovations, depending on the situation and the parties involved.
For example, a tenant may make alterations to a leased property, such as installing new fixtures or repainting walls, with the landlord's consent. Similarly, a company may amend a business agreement by altering specific terms, such as the payment schedule or delivery conditions.
Why are alterations important?
Alterations are important because they allow for flexibility and adaptability in both physical and contractual arrangements. In real estate, alterations can help businesses customize spaces to better meet their needs, while in contracts, alterations allow the parties to adapt the terms based on changing circumstances.
For businesses, ensuring that alterations are properly documented and authorized is crucial to avoid disputes, especially when dealing with leased or borrowed properties, or when modifying formal agreements.
Understanding alterations through an example
Imagine a company leases office space and, after a year, decides to install new shelving units and reconfigure the office layout. The company asks the landlord for permission to make these alterations, and the landlord agrees, specifying that the alterations must be restored to the original condition when the lease ends.
In another example, a supplier agreement includes a provision for potential alterations to the delivery schedule. The parties agree that the delivery terms can be altered if there is a delay in the production process, provided both parties approve the changes in writing.
An example of an alterations clause
Here’s how an alterations clause might look in a contract:
“The Tenant shall not make any alterations, additions, or improvements to the Premises without the prior written consent of the Landlord. Any approved alterations must be performed in a workmanlike manner and in compliance with applicable laws. Upon expiration of the lease, the Tenant shall, at the Landlord’s request, restore the Premises to their original condition, except for reasonable wear and tear.”
Conclusion
Alterations are a critical aspect of property and contract management, allowing businesses to modify physical spaces or contractual terms to suit their needs. Properly managing alterations, especially through clear clauses and mutual agreements, helps prevent disputes and ensures that all parties are aligned on expectations.
Including well-defined alteration clauses in agreements protects the interests of both parties and ensures that changes are made legally, appropriately, and with clear documentation.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.