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📝 Clause Misconceptions: The Limits of “All Amendments Must Be in Writing”

by | Feb 17, 2025 | Blog

SaaS Contract Clauses

Contracts often contain a clause stating that any amendments or modifications must be in writing to be valid. This might seem ironclad, but courts frequently allow changes based on oral agreements or the parties’ course of conduct.

🔹 Sample Clause:
“No amendment, modification, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties.”

🏛 Courts May Still Enforce Oral Modifications

Despite such clauses, many state courts recognize that contracts can still be modified orally or through conduct. If both parties behave as if a change was made—such as accepting new terms in practice—a court may enforce that modification.

For example, if a vendor consistently delivers services outside the original scope, and the customer pays without objection, a court may find that the contract was effectively modified despite the lack of a formal written amendment.

📧 Email = A “Writing”

In today’s digital age, emails are often considered legally sufficient to modify a contract, even if they don’t include formal signatures. If one party confirms a change in an email and the other party proceeds accordingly, courts may treat this as a valid amendment.

Best Practices for Contract Management

To avoid unintended modifications:

  • Train employees on the legal risks of informal contract discussions.
  • Preserve all email communications related to contract changes.
  • Document oral discussions with meeting notes or follow-up emails.
  • Use AI-powered note-taking for conference calls to capture commitments in real time.

While written amendments remain the best way to ensure contract clarity, businesses must recognize that actions, emails, and verbal agreements can still carry legal weight. Being proactive in contract management can help prevent costly disputes.

#ContractLaw #LegalBestPractices #BusinessContracts #AICompliance #RiskManagement

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