Further agreements: Overview, definition, and example
What are further agreements?
Further agreements refer to additional contracts, understandings, or arrangements that are made between the parties after the initial agreement has been established. These agreements are typically used to clarify, modify, or add new terms to an existing contract. They can address new issues that arise after the original agreement was signed, or they may refine certain aspects of the original deal to ensure smoother execution or to accommodate changing circumstances.
Further agreements are often formalized in writing, but they can also be made verbally or implied based on the ongoing relationship between the parties, as long as they do not conflict with the original contract's terms.
Why are further agreements important?
Further agreements are important because they allow parties to adapt to new information, unforeseen circumstances, or changing conditions without completely redoing the original agreement. They provide a mechanism for resolving ambiguities or gaps in the original contract and for making adjustments to the relationship between the parties as needed.
For businesses, further agreements ensure that long-term projects or ongoing relationships can evolve and remain effective, even as circumstances change. For individuals, further agreements help clarify expectations and responsibilities that may not have been fully addressed in the initial contract.
Understanding further agreements through an example
Imagine a software development company and a client enter into an agreement for the creation of a mobile app. Initially, the agreement specifies the features and functionality of the app, as well as a timeline for delivery. However, after some development work begins, the client requests additional features that were not included in the original contract.
The parties then create a further agreement to add these new features to the scope of the project, detailing additional costs, new timelines, and the responsibilities of each party. This further agreement modifies the original contract to accommodate the new requirements.
In another example, a landlord and tenant sign a lease agreement for a one-year rental period. Midway through the lease term, the tenant requests an extension for another six months. The landlord and tenant negotiate a further agreement to extend the lease under updated terms, such as revised rent or additional conditions for the extended period.
An example of a further agreements clause
Here’s how a further agreements clause might appear in a contract:
“The Parties agree that any changes, amendments, or additions to this Agreement must be made in writing and signed by both Parties. This Agreement may be supplemented by further agreements, which shall be incorporated into this Agreement and become binding upon the Parties once executed.”
Conclusion
Further agreements are essential tools in contract law that allow parties to make adjustments, refinements, or additions to an existing agreement. They provide flexibility and adaptability, ensuring that the relationship between the parties remains effective and aligned with their evolving needs or circumstances.For businesses and individuals, understanding the role of further agreements can help in managing ongoing relationships and ensuring that contracts remain relevant and effective over time. For legal professionals, crafting and managing further agreements is vital to maintaining the integrity and enforceability of the original contract while accommodating necessary changes.
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.