What is Amendment?
Amendment refers to any modification and change to the existing law, contract, or government regulations.
Amendment Explained
When an existing law, contract, or agreement requires changes to terms or other minor adjustments, companies or the government may amend those terms. Amendments can be made to correct existing terms that may no longer be suitable for the current scenario. However, only minor changes should be made, and the amendment should not alter the nature, substance, or primary purpose of the existing agreement.
Involved parties can modify the price or deadline mentioned in the contract, while the other sections should remain intact under the amendment. However, if major changes are necessary, such as changes in ownership, the names of the involved parties, or modifications to the objectives, or if the existing contract cannot be altered, a new contract should be created to replace the old one.
The parties mentioned in the contract may need to comply with new regulations under the agreement and obtain a new contract stamped under the law. They may also need to submit the new contract document to the relevant government authorities.
For example, Changes to the constitutional documents of a company or LLP (Memorandum and Articles of Association) require filing with the Registrar of Companies.