When To Use Supplemental Agreement

Second, the parties need to think about what lawyers call the “return of quid” for the deal. The consideration is what each party puts in the agreement, and that is what the court will apply if asked to do so. Usually, this is considered in terms of positive actions, the obligation to do something or pay for something. However, in this difficult market, this may involve what we call abstention – not doing something or not enforcing a right or claim that would otherwise be enforced. It is more natural for this type of agreement to be drafted with care. If the addendum is independent of and separable from the original agreement, it is necessary to examine the specific content of the dispute— whether the dispute arises from or relates to the original agreement or addendum, and then decide which dispute settlement clause applies. . . .