Your Deals Can Trump No-Amendment Language
For your
ongoing projects with your service providers and customers, do you have written
contracts spelling out the work to be performed and stating that any changes
must be in writing? Good. If there are any changes or expansions to the
project from the initial scope of work or purchase order, do you document
them? Great. Will taking these steps prevent all disputes
over what services are included in the project?
Not always.
Many companies use contracts stating that all changes must be in writing. (If yours don’t say so, have a lawyer review your contract forms now.) The provision alone, however, is not enough. The law in many states provides that a course of dealings between parties will trump a provision that says contracts may only be changed in a signed amendment. This can lead to expensive disputes about whether the work to be provided under the contract or any amendment was really part of the services included in the price.