Deed of variation template

If you need to alter a contract that's already been executed, you don't have many options. This is where a Deed of Variation can help.

Use this detailed guide to find out what a Deed of Variation is, how it works, and what a Deed of Variation template should include.

What is a Deed of Variation?

A Deed of Variation (DoV), also known as a Deed of Amendment or Deed of Change, is a legal instrument that allows modifications to be made to a previously settled contract or agreement. It's a flexible tool that can be used to modify various kinds of contracts, from business agreements to personal contracts, without terminating or fully rewriting the original agreement.

In many countries, the most common application of a Deed of Variation is to alter an individual's will after their death.

What is the purpose of a Deed of Variation?

The primary purpose of a Deed of Variation is to enable changes to a pre-existing contract without completely rewriting or terminating the original agreement.

It provides a legal and formal method to modify agreements in response to changes in circumstances; to correct errors; or to add or remove terms based on the parties' changing needs. This flexibility helps maintain the relevance and efficacy of the original contract.

When would I use a Deed of Variation template?

You might need to use a Deed of Variation in several scenarios, such as:

1. Changing contract terms: for example, if the parties involved wish to amend certain clauses or conditions of a pre-existing contract without altering its core.
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2. Adapting to new circumstances: for example, if unexpected situations occur that were not previously accounted for in the initial agreement.
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3. Correcting mistakes: for example, if errors or omissions in the original contract need to be corrected. In the case of probate, this might be to extend inheritance to someone who wasn't included in the original will.

Who would draft a Deed of Variation?

Usually, a Deed of Variation is created by a legal professional or a party to the original agreement who has the authority to make changes.

In a business context, this could be a legal officer, contracts manager, or anyone else responsible for managing legal documents within the organization.

In a personal context, like a Deed of Variation to amend a will, the beneficiaries, as well as any parties affected by the change to the will, would likely need to sign the Deed of Variation too. You should always seek legal advice in situations like these.

What to consider when drafting a Deed of Variation template

Drafting a Deed of Variation requires precision and attention to detail. Here are some key points to consider:

1. Specify changes clearly: The amendments should be clearly articulated, leaving no room for ambiguity. In the case of probate, altering inheritance can be an emotive issue so it's important to strive for clarity.
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2. Maintain original contract integrity: Ensure that the original contract's essence is preserved, and the changes don't conflict with its fundamental purpose.
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3. Mutual consent: All parties involved should agree on the proposed changes. This agreement should be made plain in the contract itself.
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4. Legal compliance: The variations should comply with the law and should not infringe upon any party's rights.

What does a Deed of Variation include?

A well-drafted Deed of Variation template should include the following elements:

1. Title and introduction

‍The document should have a clear title that indicates its purpose, followed by an introductory paragraph identifying the parties involved and a reference to the original agreement being modified.

2. Details of the original agreement

‍This section should detail the original agreement's date, parties involved, and its main purpose. It should also include a statement that all parties wish to vary the agreement.

3. Specific variation clause

‍The changes to the contract should be detailed comprehensively in this section. It's important to be explicit about which clause(s) or section(s) of the original contract are being modified, added, or removed.

4. Unaffected provisions

‍This section should clarify that all terms and conditions not explicitly varied by the Deed of Variation continue in full force and effect, maintaining the validity of the original agreement.

5. Governing law and jurisdiction

‍It's important to state the governing law of the Deed of Variation. This is typically the same as the original agreement unless otherwise agreed by the parties.

6. Execution clause

‍This is where the parties sign the document. It's crucial to include a space for each party's signature, printed name, title, and the date of signing. The execution clause should also specify that the parties are signing the deed voluntarily and intend to be legally bound by it.

7. Schedule or appendix (if needed)

If the variations are extensive or if additional documents are referenced in the Deed of Variation template, it's practical to include a schedule or appendix.

Remember, the precise content of a Deed of Variation can differ depending on the nature of the original agreement and the specific changes being made. Always consult with a legal professional to ensure your Deed of Variation meets the necessary legal and contractual requirements for your particular situation.

How are Deeds of Variation usually managed?‍

1. Identify of the need for variation

‍The first step is identifying the need for a change in the agreement. This could stem from changes in business circumstances, a need to correct errors in the original agreement, or a desire to add, alter, or remove specific clauses.

2. Consult all parties

‍Once the need for a variation is identified, all parties to the agreement should be consulted. This is to ensure everyone is in agreement about the proposed changes and to discuss the implications of the variation. If you fail to do this early on, you'll probably find yourself with a Deed of Variation that the counterparty refuses to sign.

3. Draft the Deed of Variation template

‍The next step is to draft the Deed of Variation template. This document will reference the original agreement and detail the precise changes being made. It must be drafted with precision and clarity to prevent any misinterpretation.

It also needs to make sure all of the components we described above are present, which is why it's worth using a deed of variation template.

4. Negotiate the new terms

‍The draft Deed of Variation is then circulated to all parties for review. It's often shared via email as a static file, downloaded, redlined in Word, and sent back and forth until the revisions are agreed. This can involve multiple rounds of feedback and negotiations to reach a consensus on the changes.

5. Get legal's approval

‍ It's a good practice to have the document reviewed by a lawyer or a legal expert. This is also known as contract review and approval. Legal teams can ensure the deed is legally sound, that the changes are enforceable, and that it doesn't violate any laws or regulations.

6. Sign the Deed of Variation

Once all parties agree to the changes, the Deed of Variation is signed and dated. This is a crucial step, as the signing of the document makes the changes legally binding. This was traditionally done using wet ink signatures, or scanned signatures. Today, most businesses rely on eSigning solutions like DocuSign or Adobe Sign instead.

7. Share the signed copy

Copies of the signed Deed of Variation are distributed to all parties for their records. This is important for transparency and future reference. It also helps to ensure that parties perform the revised terms of the agreement, not the old ones.

8. Store the document

‍The original signed Deed of Variation is stored securely, often in a physical file or as a scanned copy on a secure server. It's important that the document is easily retrievable for future reference or in case of any disputes.

9. Implementation and monitoring

Your work isn't finished post-signature. The changes made by the Deed of Variation are then implemented. The effectiveness of these changes should be monitored to ensure they're achieving the desired outcome.

But a manual process like this can be labor-intensive and time-consuming, especially for complex agreements or where multiple parties are involved. Fortunately, automated contract management systems, like Juro, can streamline this process significantly, enabling quicker turnarounds, greater accuracy, and easier tracking of changes. Let's explore this improved workflow now.

How to automate Deeds of Variation from templates

Juro's AI contract collaboration means you don't have to copy and paste from PDF templates. Instead you can automate contracts like Deeds of Variation in moments from digital templates. This can simplify and streamline the process of creating and managing routine contracts. Here are the key features.

1. Automated contract templates

In Juro's unique editor, purpose-built for contracts, you can create robust contract templates which can then be used to automate agreements like a Deed of Variation. These are designed to maintain legal accuracy, whilst allowing you to vary key fields (names, addresses, dates and so on) using a simple Q&A. This significantly reduces the time spent drafting documents from scratch.

2. Real-time collaboration

‍Juro's platform enables all parties to collaborate internally in real-time, within the same document. This eliminates the need for circulating multiple versions of a document and reduces the risk of miscommunication or error.

3. Automated workflows

‍Using Juro, you can automate the contract lifecycle from creation to execution. You can set up automated approval workflows that ensure the right people review and sign off on the Deed of Variation, making the approval process quicker and more efficient.

4. Contract smartfields

‍With Juro’s smart fields, you can ensure that key details, such as party names, dates, and the specific clauses being varied, are always accurate and updated. This minimises the risk of error and streamlines the contract drafting process.

5. Electronic signature

‍Juro offers secure, legally binding eSignatures, eliminating the need for physical signatures. This speeds up the contract signing process and makes it possible for parties in different locations to sign the Deed of Variation simultaneously. Juro users and their customers can also sign contracts on a variety of devices, and you have the option to sign in DocuSign if you prefer.

6. Centralized storage & version control

Juro securely stores all your contracts in one place, making them easily accessible and searchable. It also maintains a version history, allowing you to track all changes made to a contract, which is particularly useful when managing Deeds of Variation.

7. Notifications and reminders

‍Juro's system can send out automatic notifications and reminders to relevant parties. This ensures timely reviews, approvals, and renewals, keeping the contract management process on track.

8. Analytics and insights

‍Juro offers detailed analytics, providing insights into your contract processes. You can use these insights to identify bottlenecks and areas for improvement, making your contract workflows more efficient.

By leveraging Juro's collaborative contract management platform, you can make the process of creating and managing a Deed of Variation significantly smoother, faster, and more efficient, all while reducing the risk of human error. To find out more and see the platform in action, hit the button below.