An agency agreement is a legally binding document that outlines the terms and conditions of a business relationship between an agent and a client. It serves as a guide for both parties and typically covers topics such as payment, commission, responsibilities, and termination.
However, situations may arise that require modifications to the original agreement. This is where an agency agreement addendum comes in. An addendum is an additional document that is added to the original agreement to add, delete, or modify its terms.
Why Use an Agency Agreement Addendum?
An addendum is used when there is a need to change the terms of an existing agreement without having to create a new contract altogether. This can be beneficial in situations where there is a need for a quick update to the agreement or when the change is only temporary.
In the context of agency agreements, an addendum can be used in situations where there are changes to the scope of work, new payment terms, or changes in the commission structure. It can also be used to add new clauses that were not included in the original agreement or to clarify existing ones.
What Should Be Included in an Agency Agreement Addendum?
Like the original agreement, an addendum should be clear, concise, and specific. It should clearly detail the changes being made to the original agreement and the effective date of these changes. It should also be signed by both parties to indicate their agreement to the new terms.
In addition, an addendum should refer back to the original agreement to ensure that there is no confusion or misinterpretation of the terms. This can be done by referencing the specific section or clause of the original agreement that is being modified.
Conclusion
An agency agreement addendum is a useful tool that can be used to modify the terms of an existing agreement. It can be a quick and efficient way to update an agreement without having to create an entirely new contract. When creating an addendum, it is important to ensure that it is clear, specific, and signed by both parties. By doing so, both parties can move forward with confidence that the new terms will be followed as agreed upon.