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Attorney. Specialist in commercial and labor law. Over 16 years of experience in legal support of businesses - debt recovery, contract enforcement, recovery of damages, commercial property and lease disputes.
Additional agreement on replacement of a party in the contract
An additional agreement on the replacement of a party is an addition to the main agreement, which officially changes the composition of its participants. It essentially makes changes to the agreements, but does not change their essence. The meaning of such an additional agreement is to create conditions for legal succession (for example, under a housing rental agreement) and flexibility of the main agreement. We will talk about how to prepare it and how a lawyer can help in this article.
When is a replacement of a party in a contract allowed?
Replacement of a party in a contract may occur in cases where this is provided for by law or the contract itself. Among the most common cases are:
- transfer of rights and obligations (assignment of the right of claim by the creditor to another person);
- reorganization of a legal entity (as a result of merger, acquisition, division);
- death of an individual (debtor);
Important to know! It is necessary to constantly check the legislation, as some contracts may contain restrictions on the replacement of a party. There are increasingly cases when, when replacing one party, permission from the other is required (for example, when replacing the debtor under a credit agreement) or is not required (when changing the creditor).
What is the difference between an “additional agreement” and an “appendix to the contract”?
The difference between these documents is fundamental, since each of them has a different purpose. In particular, an appendix is a document that only clarifies, details or supplements the main contract, while an additional agreement can change its main terms. The difference between them also lies in the cases of use. An appendix is developed when it is necessary to describe the specification of the goods, the schedule of work, and so on, and an additional agreement – when changing the price, the party to the obligation, extending the term, etc. Moreover, an additional agreement to the main contract is a separate independent transaction that has independent significance for the performance of certain actions in the interaction between counterparties.
Regarding which contracts can an additional agreement be concluded on the replacement of a party in them?
An additional agreement on the replacement of a party in a contract can be concluded in various areas of economic activity. It can make the necessary changes to the contract:
- purchase and sale;
- rental (property or premises);
- provision of services;
- loans;
- leasing;
- insurance, etc.
How to prepare an additional agreement on the replacement of a party in a contract: legal guidelines
To prepare a corresponding additional agreement, it is necessary to take into account all legal nuances:
- first, clearly determine who exactly is being replaced: the creditor or the debtor. This depends on whether permission from the other counterparty is required;
- second, draw up the initial text of the additional agreement. This may require information such as the details of the parties, the subject of the main agreement, a list of obligations, etc.;
- third, check the compliance of the form of the agreement with the form of the main agreement and determine the need to take additional actions. Therefore, if the agreement was notarized, the additional agreement on its change is also subject to notarization in accordance with current national legislation;
- finally, having certified the text with your own signature, send it to the other party for approval.
Regarding the latter, it is recommended to schedule a meeting with the counterparty in advance to discuss the possibility of replacing the relevant party. A contract lawyer from our law firm “Prikhodko & Partners” can help with this and other issues.
For which additional agreements is a notarization required?
Notarization of an additional agreement is mandatory if required by law (for example, when the agreement itself was notarized) or if the parties agreed to it in the main agreement. As a general rule, additional agreements on the replacement of a party in the agreement will be subject to notarization:
- rental of real estate (buildings, structures) for a period of three years or more;
- lease of a vehicle;
- purchase and sale of real estate;
- donation of real estate.
Development of an additional agreement on the replacement of a party in a contract: what services can a lawyer from the company “Prikhodko & Partners” provide?
Development of additional agreements is a responsible process that requires in-depth knowledge of the law and experience. The lawyers of our company provide professional assistance at all stages of the specified process to ensure legality and protection of your interests in contractual relations. Therefore, the lawyers provide the following services:
- legal examination of the agreement;
- preparation of a draft of the relevant document;
- making adjustments to already prepared additional agreements;
- legal support of the signing process (negotiations).
How much does it cost to prepare an additional agreement on the replacement of a party in a contract with the help of a lawyer?
The cost of this service depends on the complexity and scope of the lawyer’s work. Below are approximate prices for each option:
- first, legal consultation (analysis of the agreement) – from 3,000 UAH;
- secondly, checking the content of the additional agreement and making the necessary changes – from 4,000 UAH;
- thirdly, development and full support of signing (with notarization) – from 6,000 UAH, respectively.
Do you have any questions? Then to receive detailed advice and the exact cost of the service for developing an additional agreement on replacing a party in the contract, we recommend filling out the form below.
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