
Tata Consultancy Services (TCS)
2019-10-15 04:20:49
Consideration Amount for Variation Agreement
For Variation Agreement, is it necessary to mention some consideration amount (e.g. $1 in the below example) to make it binding/legitimate even if the consideration amount is mentioned in the Original Agreement?
Example:
"In consideration of the payment of the sum of $1 by each party to the other (receipt of which each party hereby acknowledges), the parties agree that the Original Agreement shall be varied in accordance with the arrangements set out in this Variation Agreement"
I've also seen a few Variation Agreements where no consideration amount is mentioned. It would be great if someone can clarify.
Example:
"In consideration of the payment of the sum of $1 by each party to the other (receipt of which each party hereby acknowledges), the parties agree that the Original Agreement shall be varied in accordance with the arrangements set out in this Variation Agreement"
I've also seen a few Variation Agreements where no consideration amount is mentioned. It would be great if someone can clarify.