Can an Adjustment Agreement be signed electronically?

Yes. Electronic signatures are generally binding under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided the parties consent, intent is clear, the signature is attributable, and records can be retained.

When is notarization required?

Notarization depends on the subject matter and state law. Real estate-related amendments often require notarization; check state notary rules or the original agreement’s notarization clause before execution.

How do I correct an executed adjustment?

Prepare a written corrective amendment signed by all original signatories referencing the executed adjustment. Do not alter a signed original without a signed amendment or restatement to avoid disputes.

Who must sign an entity amendment?

An authorized representative with corporate signature authority must sign. Attach a corporate resolution or power of attorney if the signer’s authority could be questioned later.

Can the agreement be revoked after signing?

Revocation requires agreement by the parties or a contractual rescission clause; unilateral revocation is generally ineffective unless permitted by the contract or a court order.

How long should I keep executed copies?

Retain executed agreements for the active term plus applicable statutory periods: at least 3 years for tax records (IRC §6501(a)), 6 years for HIPAA-related records (45 CFR §164.530(j)), and longer if state law requires.

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Legal
Adjustment Agreement

Adjustment Agreement

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ADJUSTMENT AGREEMENT

This Adjustment Agreement (the "Agreement") is made and entered into as of Effective Date: by and between Party A Name: , with principal address at (the "Adjustor"), and Party B Name: , with principal address at (the "Obligor").

RECITALS

WHEREAS, on Original Agreement Date: , the Adjustor and Obligor entered into a written agreement identified as: (the "Original Agreement");

WHEREAS, as of the Effective Date, the outstanding obligation under the Original Agreement is Original Principal Amount: $ , plus accrued charges as described in the accounting of the Adjustor; and

WHEREAS, the parties desire to amend and restate certain payment and performance terms of the Original Agreement as set forth below in order to avoid further dispute and to provide for an adjusted payment schedule on the terms and conditions contained herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

1.1 Capitalized terms used in this Agreement and not otherwise defined shall have the meanings ascribed to them in the Original Agreement. For avoidance of doubt, "Adjusted Obligation" means the amount described in Section 2.2 below.

2. ADJUSTMENT TERMS

2.1 Adjustment Effective Date. The parties agree that the adjustment set forth herein shall be effective as of Adjustment Effective Date: .

2.2 Adjusted Obligation. The parties agree that the Original Principal Amount shall be adjusted to Adjusted Principal Amount: $ . This Adjusted Principal Amount constitutes the total outstanding principal balance after application of credits, concessions, and agreed deductions described in the accounting attached hereto or described below.

2.3 Adjustments and Credits. Describe adjustments, credits, or offsets applied:

2.4 Payment Schedule. The Adjusted Obligation shall be paid in accordance with the payment schedule set forth below:

Number of Installments First Payment Due Payment Frequency Amount Per Installment

3. CONSIDERATION

In consideration of the Adjustor's agreement to accept the adjusted payment terms and the Obligor's promises to pay as set forth herein, the parties agree that the Adjustor's forbearance, concessions, and modifications to the Original Agreement constitute sufficient and valuable consideration.

4. PAYMENT TERMS AND APPLICATION

4.1 Payments shall be made to Payment Address or Account: . Electronic payment instructions (if any) shall be provided in writing to the Obligor by the Adjustor.

4.2 Application of Payments. Payments received will be applied first to costs and fees, then to accrued interest, and finally to principal, unless otherwise agreed in writing and signed by both parties.

5. INTEREST AND LATE CHARGES

5.1 Interest Rate. The Adjusted Obligation shall bear interest at an annual rate of applied to the unpaid principal balance from the Effective Date until paid in full, to the extent permitted by applicable law.

5.2 Late Charge. Any payment not received within days after its due date shall bear a late charge of $ or the maximum amount permitted by law, whichever is less.

6. SECURITY

6.1 Security Interest. To secure the Adjusted Obligation, the Obligor grants to the Adjustor a security interest in the collateral described as Collateral Description:

6.2 Perfection. The Obligor shall execute and deliver such financing statements, instruments, and other documents and shall take such actions as may be reasonably required to perfect and maintain the security interest.

7. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that (a) it has full power and authority to enter into and perform its obligations under this Agreement; (b) this Agreement is a legal, valid and binding obligation enforceable in accordance with its terms; and (c) the execution and delivery of this Agreement will not violate any law, order, or contractual obligation applicable to such party.

8. DEFAULT; REMEDIES

8.1 Events of Default. The following shall constitute an Event of Default: (a) failure by the Obligor to make any payment when due under this Agreement and such failure continues for a period of days after written notice; (b) insolvency, bankruptcy, or appointment of a receiver for the Obligor; or (c) breach of any representation, warranty, or covenant that is not cured within 30 days after notice.

8.2 Remedies. Upon an Event of Default, the Adjustor may (in addition to all other available remedies) accelerate all amounts due under this Agreement, exercise rights with respect to any collateral, and pursue any remedy at law or in equity.

9. INDEMNIFICATION

Obligor shall defend, indemnify and hold harmless the Adjustor and its affiliates, officers, directors and employees from and against any and all claims, losses, liabilities, costs and expenses (including reasonable attorneys' fees) arising out of or relating to the Obligor's breach of this Agreement or the inaccuracy of any representation or warranty.

10. CONFIDENTIALITY

The parties agree to keep the terms and existence of this Agreement confidential, except as required by law, and except as necessary to enforce the parties' rights hereunder or to obtain professional advice.

11. NOTICES

All notices under this Agreement shall be in writing and shall be delivered personally, by certified mail (return receipt requested), or by nationally recognized overnight courier to the addresses set forth below or to such other address as a party may designate by written notice to the other.

Adjustor Notice Address Obligor Notice Address

12. AMENDMENT; WAIVER

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom enforcement is sought. No failure or delay by any party in exercising any right shall operate as a waiver.

13. GOVERNING LAW; VENUE

This Agreement shall be governed by and construed in accordance with the laws of the Governing State: , without regard to principles of conflicts of law. The parties submit to the exclusive jurisdiction of the state and federal courts located in that state for any dispute arising out of or relating to this Agreement.

14. ENTIRE AGREEMENT; SEVERABILITY

This Agreement, together with the Original Agreement as amended hereby, constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

15. COUNTERPARTS; ELECTRONIC SIGNATURE

This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Signatures transmitted by electronic means (including scanned or facsimile signatures) shall be binding.

Adjustor Printed Name:

Adjustor Signature:

Date:

Obligor Printed Name:

Obligor Signature:

Date:

What an Adjustment Agreement Is and When it’s Used

An Adjustment Agreement is a legal instrument that amends, clarifies, or restructures an existing contract’s terms without creating an entirely new agreement. Commonly used in loan modifications, lease changes, settlement adjustments, and contract corrections, it records mutual consent to specific changes such as payment schedules, interest rates, scope modifications, or deadlines. When executed properly it preserves the original contract’s continuity while documenting agreed deviations, and it should identify affected provisions, effective dates, and any new consideration exchanged by the parties.

Why a Clear Adjustment Agreement Matters

A written Adjustment Agreement reduces ambiguity, creates enforceable evidence of consent to modify obligations, and helps prevent disputes over original terms. It documents the parties’ intent, the precise changes, and effective dates, which supports enforceability under the ESIGN Act and UETA when executed electronically with proper consent and retention.

Who Typically Prepares and Signs an Adjustment Agreement

Adjustment Agreements are used by different parties depending on context; prepare this document according to who has the authority and who will be affected.

Lenders and servicers modifying loan terms after borrower hardship, documenting new schedules and consideration in writing.
Landlords and tenants when rent, lease term, or repair obligations change mid-lease and both parties agree to new terms.
Business counterparties adjusting contract scope, delivery dates, or pricing without terminating the original master agreement.

Ensure the signer(s) represent the named party and have authority to bind it; include evidence of authorization when appropriate.

Common Signatory Roles

Lender / Creditor

An institutional or individual creditor that proposes or approves changes to repayment terms. The lender’s authorized officer or loan servicer must sign, and internal approval documentation may be required to prove authority.

Borrower / Debtor

The individual or entity whose obligations are being modified. The borrower should sign and date; if signing on behalf of an entity, include evidence of authority such as corporate resolution or power of attorney.

Step-by-Step: How to Complete an Adjustment Agreement

Follow these core steps to prepare, review, and execute a legally sound Adjustment Agreement.

01

Prepare: Identify original contract sections to change and draft precise replacement language.
02

Review: Have legal and accounting review changes for compliance and tax consequences.
03

Authorize: Confirm signatory authority and attach any required resolutions or powers of attorney.
04

Execute: Sign, date, notarize if needed, and distribute final copies to all parties.

Typical Workflow for Issuing and Executing an Adjustment Agreement

This concise flow shows how an Adjustment Agreement moves from draft to final execution in an organization.

Draft: Create the amendment with exact clause references and new terms.
Internal Approval: Obtain sign-off from legal, finance, and authorized approvers.
Sign: Use in-person or electronic signatures; notarize if jurisdiction or contract requires.
Record: Distribute executed copies and store per retention policy.

Configuring an Electronic Workflow for an Adjustment Agreement

Set up basic fields and authentication to reduce signer friction while preserving legal traceability.

Field	Configuration
Authentication Method	Email link with optional SMS code for signer verification
Template Controls	Use conditional fields to show only relevant amendment sections
Audit Trail	Enable timestamps, IP logging, and document history
Integration	Connect to CRM or document repository for automatic storage

Technical Requirements for Digital Signing and Distribution

Choose a signing platform that supports required authentication, file formats, and integrations for secure execution.

Integrations: Salesforce | NetSuite | Google Workspace support
File Formats: PDF and DOCX are commonly supported
Authentication: Email, SMS, KBA, or SSO options

Ensure the platform captures a complete audit trail and stores copies in a tamper-evident format to meet legal and recordkeeping requirements.

Key Timing Considerations When Drafting an Adjustment Agreement

Document and calendar critical dates so all parties understand when obligations begin, expire, or require action.

Execution Date:

Date when parties sign; may differ from effective date

Effective Date:

Date when amended terms take legal effect

Notice Periods:

Observe any contract notice periods before changes take effect

Filing Deadlines:

File with courts or registries when required by law or original contract

Review Dates:

Schedule compliance and performance reviews after amendment

Common Preparation Errors to Avoid

Failing to identify the exact clause or section in the original agreement, producing ambiguity about what changed and when.
Not obtaining or documenting signatory authority, which can lead to later challenges that the agreement is unenforceable.
Omitting clear effective dates or backdating without agreement, creating disputes over when obligations begin.
Neglecting to consider tax, regulatory, or licensing consequences of the change, which can trigger penalties or voiding.

Essential Security and Compliance Controls for Digital Adjustment Agreements

Encryption: AES-256 at rest

Transport: TLS 1.2/1.3 in transit

Audit Trail: Comprehensive signing logs

Certifications: SOC 2 Type II

ESIGN/UETA: Legal framework compliance

HIPAA/BAA: BAA available for healthcare

Risks and Consequences of an Incorrect or Incomplete Agreement

Enforceability Risk: Agreement may be void

Litigation: Increased dispute exposure

Regulatory Penalty: Fines or sanctions possible

Tax Impact: Incorrect reporting risk

Notary Defects: May invalidate execution

Operational Delay: Performance and billing issues

Selected eSignature Vendor Comparison for Executing an Adjustment Agreement

Comparison focuses on starting price, trial availability, bulk send, audit trail, HIPAA support, and envelope limits; signNow is listed first for clarity.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Yes, limited	Yes, limited
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Yes (BAA available)	Yes	Varies	Varies
Envelope Cap	No envelope cap	100 envelopes/user/year	Vendor limits vary	Vendor limits vary	Vendor limits vary

Frequently Asked Questions About Adjustment Agreements

Answers to common execution, enforceability, and revision questions for Adjustment Agreements in the United States.

Need help? Contact support

Can an Adjustment Agreement be signed electronically?
Yes. Electronic signatures are generally binding under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided the parties consent, intent is clear, the signature is attributable, and records can be retained.
When is notarization required?
Notarization depends on the subject matter and state law. Real estate-related amendments often require notarization; check state notary rules or the original agreement’s notarization clause before execution.
How do I correct an executed adjustment?
Prepare a written corrective amendment signed by all original signatories referencing the executed adjustment. Do not alter a signed original without a signed amendment or restatement to avoid disputes.
Who must sign an entity amendment?
An authorized representative with corporate signature authority must sign. Attach a corporate resolution or power of attorney if the signer’s authority could be questioned later.
Can the agreement be revoked after signing?
Revocation requires agreement by the parties or a contractual rescission clause; unilateral revocation is generally ineffective unless permitted by the contract or a court order.
How long should I keep executed copies?
Retain executed agreements for the active term plus applicable statutory periods: at least 3 years for tax records (IRC §6501(a)), 6 years for HIPAA-related records (45 CFR §164.530(j)), and longer if state law requires.

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