Business world is immensely dynamic. With changing equation in business and personal contracts, circumstances change, arising the need to modify existing agreements.In the UAE, changes in agreements happen throughan addendum agreement. Those in need for such agreement must understand that drafting such agreements require legal knowledge, clarity, precision, and foresight.  This is where professional legal assistance matters.

First of all, it is essential to understand an addendum agreement.

This is a legally binding contract that is used to alter or supplement an existing document. When one needs to draft addendum agreement, they may want to add new clauses, amend existing terms, or extend the duration of an agreement. Here, it is essential to note that it does not replace the original contract, but becomes a part of that existing agreement.

The legal framework around addendum agreements

Contracts are a part of UAE’s civil legal system, or UAE Civil Transactions Law. The law allows parties to amend their agreements by mutual consent, as long as the new modifications do not violate public policy or mandatory legal provisions.

Key points of consideration include: the addendum must clearly refer to the original contract, be signed by all relevant parties, be in writing (preferably in both English and Arabic, depending on jurisdiction and entity requirements), and be notarized or registered if the original contract required such formalities (when it comes to property, employment, and commercial agency contracts).

The need for an addendum

Certain situations like change in payment terms, extension of contract duration, addition of scope or deliverables, modification of responsibilities or obligations, and updates due to legal or regulatory changesarise the need for an addendum.

Legal assistance is essential to draft addendum agreement to ensure compliance with the law, avoid ambiguities, and safeguard one’s interest.

MLC or Marsons Legal Consultancy provides complete assistance in drafting addendum agreements as per the UAE’s laws. Get in touch to discuss your needs.