Variation agreement

This document is a contract variation agreement. It is intended to be used wherever parties to an existing agreement decide to vary the agreement.

If the parties to a contract for the creation or disposition of an interest in land intend to vary the contract in a material way, it is necessary to ensure that the agreement to vary is embodied in a formal variation agreement, which is then exchanged in the usual way. This is in order to satisfy the requirements of section 2 of the Law of Property (Miscellaneous Provisions) Act 1989.

"In my judgment the variation of a term material to a contract for the sale or other disposition of an interest in land must comply with the formalities prescribed by section 2 Law of Property (Miscellaneous Provisions) Act 1989 if either party is to be able to enforce such contract as varied." Morritt LJ, in McCausland v Duncan Lawrie Ltd [1997] 1 WLR 38. The draftsperson does not wish to chance what may, or may not be a material variation, and should use a variation agreement in all cases.

This variation agreement incorporates all of the terms of the existing contract between the parties, save as varied by the new agreement.