Q&As

If two businesses enter into a services agreement and some time later the customer wishes the supplier to carry out additional services, may the parties agree an 'addendum' or 'variation' of the agreement they signed, or must they enter into a new contract? Also, will this depend on whether the original agreement has 'rolled on'?

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Published on: 27 August 2020
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Q&A: What is the best approach for updating an existing B2B contract? notes that the parties should consider various aspects when deciding whether variation or termination is more suitable to update the contract, including:

  1. the provisions for variation, change control and termination within the existing contract

  2. the parties’ resource and appetite for pursuing either of these Options

In terms of negotiating the proposed amendments to the contract or highlighting which provisions it is suggested will be changing in the new relationship, options include:

  1. opening up ‘in principle’ discussions

  2. setting out a detailed Narrative of the proposed amendments

  3. if a variation has been chosen as the preferred method, preparing the proposed variation agreement or deed

  4. if termination and

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Jurisdiction(s):
United Kingdom
Key definition:
Services agreement definition
What does Services agreement mean?

An agreement whereby a supplier agrees to provide specified service(s) to a customer in return for payment of a fee.

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