Variation Of Terms Template
A variation of terms records a change to an existing agreement in writing — so an informal 'we'll let it slide' doesn't quietly rewrite your contract.
What's included
- Understand why variations should be in writing
- See a simple structure for recording a change
- Keep the rest of the agreement intact
- Avoid accidental variation by conduct
- Know when to have a variation reviewed
6 min read
The template
This general template records an agreed change to an existing agreement. Replace each [placeholder].
VARIATION OF TERMS Parties: [Party A] ABN [ABN] and [Party B] ABN/ACN [number] Original agreement: [name/date of the agreement being varied] Date of variation: [date] 1. Variation The parties agree to vary the original agreement as follows: - [Clause [number] is amended to read: '...'] - [New clause: '...'] - [Clause [number] is deleted.] 2. Effective date The variation takes effect on [date]. 3. Everything else unchanged Except as varied above, the original agreement continues in full force and effect. Signed: ______________ (Party A) ______________ (Party B)
Why put a variation in writing
Agreements drift over time — a longer payment period here, a waived fee there — and if those changes are only ever spoken about, it becomes hard to say what the deal actually is. Worse, terms can sometimes be varied by conduct without anyone intending it, leaving you bound to a position you never meant to accept. A short written variation records exactly what changed, from when, and confirms the rest of the agreement stands, which keeps everyone honest about the current terms.
How to use it
Use it whenever you agree to change something that matters — payment terms, limits, scope. Keep the change specific, state when it takes effect, and confirm the rest of the agreement is unchanged so you do not accidentally reopen the whole contract. File it with the original. If a variation alters payment timing or interest, the free Payment Terms Generator can help you set the new figures cleanly before you write them in.
Not legal advice
This is a general template and general information only — not legal advice. How a variation should be drafted, and whether your agreement requires variations to be in a particular form, depends on the contract. Have significant variations reviewed by a lawyer before you rely on them.
Tips
- Record changes to an agreement in writing.
- Be specific about what changed and from when.
- Confirm the rest of the agreement is unchanged.
- Avoid drifting into variation by conduct.
FAQ
Do small changes really need documenting?
Changes that matter — payment terms, limits, scope — are worth recording. Verbal changes are hard to prove. This is general information, not legal advice.
Can terms change without a written variation?
Sometimes terms can be varied by conduct, which is exactly why writing it down protects you. Check whether your agreement requires a particular form.
Does a variation need both parties to sign?
A variation is an agreement to change an agreement, so both parties' assent matters. How that is best evidenced depends on the contract.
Templates are a head start — not legal advice
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