A variation of contract is a legally binding change made to an existing contract. In Singapore, a variation of contract can be made only with the agreement of all parties involved. It can be done either orally or in writing, and the terms of the agreement must be clearly stated.
One important aspect of a variation of contract is that it must be supported by valuable consideration. This means that there must be something of value exchanged in order to make the variation valid. For example, a variation may be supported by an increased salary, additional benefits, or a change in working hours.
It is important to note that a variation of contract can only be made with the agreement of all parties involved. This means that if one party does not agree to the variation, then the original contract remains valid. This is why it is essential to consult a lawyer to ensure that all parties understand the terms and consequences of a variation of contract.
Another important consideration is that a variation of contract should be properly documented. This is to ensure that all parties have a clear understanding of the changes made to the original agreement. This documentation could take the form of an addendum to the original contract or a new contract that supersedes the original.
In Singapore, there are a number of regulations that govern the variation of contract. These regulations are intended to protect the interests of all parties involved. For example, if the variation of contract results in a change to an individual’s employment status, the employer is required to inform the individual in writing within 14 days of the variation.
Ultimately, the variation of contract is a legally binding agreement that can have significant impacts on the parties involved. It is important to consult experienced legal professionals to ensure that the variation is properly documented, supported by valuable consideration, and in compliance with all applicable regulations.
In conclusion, a variation of contract is a complex process that requires careful consideration and proper documentation. By working with a knowledgeable legal team, individuals and organizations can ensure that their variation of contract is legally binding and in compliance with all applicable regulations.