I had signed two copies of a contract which I had carefully read through and handed over both copies to be signed by the other party. I was given back a copy of the contract that was signed by the other party, however I noticed that they had changed a clause in the contract without discussing it with me. I no longer want to deal with people that try and get one over me by doing something like this. Is there any way I can get out of the contract even though I have already signed it?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Dilani Mudalige, Yokine 6060 WA
- Your contract may contain a clause which may be under the heading 'variation' that sets out how a party to the contract can change its terms. It may state that the contract can only be changed if both parties agree to amend it or it may allow one party to change the contract by giving notice to the other party in writing.
- The later situation is common where a business such as a bank has the same contract with a large number of customers and they specify that they can amend their contracts with their customers by giving notice in writing. This is because it would be impractical for them to re-negotiate the contract with each customer whenever they want to make a change.
- The answer to your question will depend on how the variation clause in your contract is worded. It would be good to get the opinion of a lawyer if it is not clear.
- If there is no clause stating that the contract can be changed by one party then the change made by them may not be valid. If they have initialled the change they made you may not be bound by the change since you have not initialled it.
- If there is a variation clause which has wording that allows one party or either party to change the contract then this change may be valid as long as they have complied with any other requirements such as a requirement to give the other party notice of the change.
- If the clause states that the contract can only be amended by both parties agreeing to it then the change they made to the contract is not valid until you agree to it. You can agree to the change by writing your initials near the amendment on the contract or in some circumstances if you behave in a way that is consistent with having agreed to the change you will be deemed (understood) to have accepted it.
- If you want to get out of the contract then regardless of whether the change is valid or not you will need to check the termination clauses in your contract. The termination clause will tell you how the contract can be terminated.