Variation of Settlement Agreement: Everything You Need to Know
A settlement agreement is a legal document outlining the terms and conditions of a settlement reached between two parties. It is a legally binding document that resolves the dispute between two parties, and once signed, it cannot be changed. However, there may be instances when the settlement agreement needs to be varied due to certain circumstances. In this article, we will discuss what variation of settlement agreement means and how it can be done.
What is Variation of Settlement Agreement?
Variation of settlement agreement refers to the process of changing the terms and conditions of a settlement agreement. This may occur when there is a change in circumstances that makes it difficult or impossible for one or both parties to comply with the terms of the agreement. For example, a party may have lost their job, and they are unable to make the payments as per the original settlement agreement.
How Can You Vary a Settlement Agreement?
To vary a settlement agreement, both parties must agree to the changes. The process involves negotiating the new terms and drafting a new agreement. It is important to note that varying a settlement agreement is not always necessary. Some changes may be minor, and the parties may be able to resolve the issue without having to vary the agreement.
The process of varying a settlement agreement involves the following steps:
1. Identify the issue: The first step is to identify the issue that requires a change in the settlement agreement. This may include a change in payment terms, modification of the scope of work, or a change in the deadline.
2. Negotiate the new terms: Once the issue has been identified, the parties must negotiate the new terms. This involves discussing the changes required and coming to an agreement on the new terms.
3. Draft the new agreement: Once the new terms have been agreed upon, a new settlement agreement must be drafted. The new agreement should be reviewed by both parties and their legal representatives to ensure that it accurately reflects the new terms.
4. Sign the new agreement: Once the new agreement has been drafted and reviewed, both parties must sign it. The new agreement replaces the old agreement, and the parties are bound by the new terms.
Conclusion
In conclusion, variation of settlement agreement is a process that allows parties to change the terms of a settlement agreement. The process involves negotiating the new terms, drafting a new agreement, and signing it. It is important to note that varying a settlement agreement is not always necessary, and parties may be able to resolve minor issues without having to vary the agreement. If you are considering varying a settlement agreement, it is important to consult with legal counsel to ensure that you are in compliance with all legal requirements.
