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Variation Agreement

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VARIATION AGREEMENT

This Variation Agreement ("Agreement") is made on between Party A: , a organised under the laws of with principal place of business at ; and Party B: , a organised under the laws of with principal place of business at .

RECITALS

WHEREAS, the parties entered into a written agreement titled dated (the "Original Agreement");

WHEREAS, the parties wish to vary certain terms of the Original Agreement as set out in this Agreement; and

WHEREAS, the parties agree that the variations described herein will take effect on the Effective Date specified below and will be subject to the terms and conditions of the Original Agreement except as expressly varied.

NOW THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows:

1. DEFINITIONS

Capitalised terms used in this Agreement and not otherwise defined have the meanings given to them in the Original Agreement. In addition, for the purposes of this Agreement: "Variation" means the changes to the Original Agreement described in clause 2 below; and "Effective Date" means the date specified in clause 3.

2. VARIATION

2.1 The Original Agreement is varied as follows:

2.2 To the extent of any inconsistency between the terms of this Agreement and the Original Agreement, the terms of this Agreement shall prevail.

2.3 Except as expressly varied by this Agreement, all other terms and conditions of the Original Agreement remain in full force and effect.

3. CONSIDERATION

3.1 In consideration of the Variation, Party shall pay to Party the sum of (the "Variation Fee") on the following terms:

3.2 Payment terms:

4. EFFECTIVE DATE AND TERM

4.1 This Agreement shall take effect on the Effective Date: .

4.2 The Variation shall continue for the period specified in the Original Agreement, unless otherwise agreed in writing by the parties.

5. REPRESENTATIONS, WARRANTIES AND ACKNOWLEDGEMENTS

5.1 Each party represents and warrants to the other that:

(a) it has full power and authority to enter into this Agreement and to perform its obligations hereunder; and

(b) the execution and performance of this Agreement will not, to its knowledge, constitute a breach of any other agreement or legal obligation to which it is a party.

6. INDEMNITY

6.1 Each party shall indemnify, hold harmless and defend the other party from and against any direct losses, damages, liabilities or costs arising from its breach of this Agreement or any negligent or wilful act or omission in connection with the Variation.

7. NOTICES

Notices to Party A

Notices to Party B

7.1 Notices must be in writing and are effective when delivered in accordance with the notice provisions of the Original Agreement or, if none, when delivered by hand, sent by certified mail, or by nationally recognised courier to the addresses above.

8. AMENDMENT, WAIVER AND COUNTERPARTS

8.1 This Agreement may only be amended or varied by a document in writing signed by both parties.

8.2 No waiver of any breach of this Agreement shall be effective unless in writing and signed by the party granting the waiver, and no waiver shall operate as a waiver of any subsequent breach.

8.3 This Agreement may be executed in counterparts and by electronic signature, each of which when executed shall be deemed an original and all of which together constitute one and the same instrument.

9. GOVERNING LAW

9.1 This Agreement is governed by and shall be construed in accordance with the laws of , and the parties submit to the non-exclusive jurisdiction of the courts of that jurisdiction.

10. ENTIRE AGREEMENT

10.1 This Agreement and the Original Agreement (as varied by this Agreement) constitute the entire agreement between the parties in respect of the subject matter and supersede all prior negotiations, understandings and agreements.

11. SEVERABILITY

11.1 If any provision of this Agreement is held to be illegal, invalid or unenforceable in any jurisdiction, that provision shall be severed to the extent of the illegality, invalidity or unenforceability and the remaining provisions shall continue in full force and effect.

12. FURTHER ASSURANCES

12.1 Each party must promptly do all further acts and execute all further documents necessary to give full effect to this Agreement.

SIGNATURES

Party A:

By:

Date:

Party B:

By:

Date:

Enter text✕

What a Variation Agreement Is and when it’s used

A Variation Agreement (also called an amendment or contract variation) is a written instrument that modifies the terms, scope, price, or duration of an existing contract while leaving the original agreement otherwise intact. It records the parties' mutual consent to specific changes, the effective date of those changes, and any new consideration or obligations. Variation Agreements are commonly used in commercial contracts, construction change orders, lease amendments, and service agreements to avoid drafting a new contract. Properly drafted variations protect both parties and create a clear, enforceable record of agreed changes.

Why documenting a contract change matters

A Variation Agreement clarifies altered obligations, allocates risk for changed scope, and preserves the enforceability of the original contract. It reduces disputes by documenting consent, timelines, and consideration, and creates an audit trail useful for compliance, procurement, and project management.

Why documenting a contract change matters

Typical users and stakeholders

Varieties of parties use Variation Agreements; common users include contracting businesses, project owners, and service providers.

  • General contractors and subcontractors who need formal change orders for price or schedule adjustments.
  • Landlords and tenants when amending lease terms such as rent, term, or permitted use.
  • Vendors and buyers altering scope-of-work, deliverables, or payment milestones in contracts.

Select the appropriate signatory and approval workflow based on the contracting entities, any lender or regulatory consents, and the governing law.

Core elements every Variation Agreement should include

These elements create a legally coherent amendment that links back to the original contract and documents the parties’ intent clearly and unambiguously.

Parties

Identify each contracting party using full legal names and entity types; include registered business names and contact details to avoid ambiguity about who is bound by the variation.

Recitals

Summarize the original agreement and the reason for the change; reference original contract date and identifying clause or exhibit to link documents unambiguously.

Variation Terms

Describe precisely which clauses are modified, deleted, or added; quote original language where practical and provide new replacement text or cross-references.

Effective Date

State the exact date the variation takes effect in MM/DD/YYYY format and specify whether retroactive application is intended and why.

Consideration

Record any payment, credit, extension, or other exchange provided for the change; specify amounts, payment schedule, and taxation responsibility if applicable.

Signatures & Authority

Include signature blocks for authorized signatories with printed name, title, date, and capacity; for entities, indicate officer authority or attach corporate resolution when required.

Step-by-step: drafting to executed copy

Follow these sequential steps to draft, approve, and execute a Variation Agreement with a clear audit trail and verified signatures.

  • 01
    Draft: Prepare amendment language and cite original clauses.
  • 02
    Review: Legal and stakeholders review terms and risks.
  • 03
    Authorize: Obtain approvals from authorized signatories or boards.
  • 04
    Execute: Sign with required witnesses or notarization if needed.

Configuring an online signing workflow

Configure the online signing workflow to match the Variation Agreement's approval chain, authentication needs, and optional conditional fields.

Field Configuration
Signer Order Sequential signing with role-based approvals.
Authentication Email link or SMS code; consider KBA for high-risk.
Conditional Fields Show fields only when specific answers selected.
Final Delivery Auto-send executed PDF to all parties and record keeper.

Typical routing for execution and delivery

Typical routing for a Variation Agreement involves preparing the amendment, assigning signers, collecting signatures, and storing the executed version securely.

  • Prepare: Upload draft and attach original contract reference.
  • Assign: Designate signer roles and signing order.
  • Authenticate: Use email link, SMS code, or stronger KBA.
  • Complete: Signer signs; system records timestamp and IP.

Technical considerations for digital execution

Select an eSignature platform that accepts PDF and Word files, keeps an audit trail, and supports required signer authentication.

  • Integrations: Salesforce, NetSuite, Google Workspace compatibility.
  • Formats: PDF, Word DOCX, and templates supported.
  • Security: TLS in transit and AES-256 at rest.

Common timing and deadline considerations

Key dates and deadlines for a Variation Agreement depend on contract notice clauses and any statutory notice requirements.

Effective Date Entry:

Set MM/DD/YYYY and confirm retroactivity per parties' agreement.

Execution Deadline:

Agree a signing deadline to lock in pricing or schedule.

Notice Periods:

Comply with original contract notice provisions for changes.

Filing or Recording:

Record only if the change affects a deed or recorded instrument.

Retention Start Date:

Retention begins on effective date; keep per record policy.

Key milestones from request to archived record

A clear milestone sequence reduces delay and establishes responsibility at each phase of the variation process.

01

Drafting & Reference

Draft variation, attach original agreement, and mark updated clauses.

02

Internal Review

Legal and finance review, note required approvals and risks.

03

Signatory Approval

Authorized officers sign or provide corporate approval documents.

04

Execution & Distribution

Finalize signatures; distribute executed copies to all parties and record keeper.

Common preparation mistakes to avoid

  • Using informal language or ambiguous references to the original contract can create disputes about the scope and intent of the variation.
  • Failing to confirm signer authority or attach corporate resolutions risks later claims the variation was unauthorized.
  • Omitting effective date or retroactivity terms can create gaps in obligations and payment triggers.
  • Neglecting to update related schedules, exhibits, or delivery dates leaves parties with inconsistent contract documents.

Risks and consequences of improper variations

Breach Risk: Changed duties may trigger breach claims.
Unenforceable Amendment: Defective form or signature may void changes.
Third-Party Consent: May require lender or vendor approval.
Tax Consequences: Payment changes can alter tax reporting.
Delay Costs: Schedule changes can cause liquidated damages.
Notarization Failure: Missing notarization when required invalidates record.

Real-world examples of electronic variations and results

These short examples show how organizations use online execution to finalize contract amendments and maintain reliable records.

Optica Ventures

Optica streamlined contract amendments for customers across transactions and internal approvals using online execution workflows.

  • The interface is simple and easy-to-use for our team.
  • By capturing signed Variation Agreements electronically and preserving an audit trail, the company reduced turnaround friction and ensured consistent records for compliance and client reporting.

Martin Properties

Martin Properties moved lease amendments and vendor changes to a digital workflow to reduce site visits and paper handling.

  • I can process and execute all of these documents online with 100% compliance and built-in security.
  • Executed variations are stored centrally, speeding tenant communications and lease administration while maintaining auditability for future disputes.

Typical eSignature pricing and feature comparison for executing variations

Compare common price and capability dimensions to match an electronic execution platform to Variation Agreement needs; signNow is shown first for parity in features and pricing.

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, no card required Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions about Variation Agreements

Answers to frequent execution, enforceability, and storage questions for Variation Agreements, with a U.S.-focused legal perspective.


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