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Deed of Variation
I need a Deed of Variation to amend an existing lease agreement, extending the lease term by an additional 2 years and adjusting the rental payment schedule to quarterly installments. The original terms regarding maintenance responsibilities and security deposit should remain unchanged.
What is a Deed of Variation?
A Deed of Variation legally changes specific terms in an existing contract or agreement under Indonesian law. When business partners or contracting parties need to modify their original arrangements - like payment terms, delivery schedules, or scope of work - this formal document makes those changes official while keeping the rest of the agreement intact.
Indonesian notaries typically prepare these deeds to ensure compliance with local regulations, particularly Law No. 30 of 2004 on Notary Positions. The deed must be signed by all involved parties and properly registered to have legal force. Unlike creating an entirely new contract, this approach saves time and maintains the original agreement's continuity while documenting important changes.
When should you use a Deed of Variation?
Consider using a Deed of Variation when you need to modify key terms in an existing contract without creating an entirely new agreement. Common scenarios include extending project deadlines, adjusting payment schedules, or updating service specifications - especially in Indonesian construction, property development, and long-term supply contracts.
This document becomes particularly valuable when dealing with complex agreements involving multiple parties or when changes need official notarization under Indonesian law. It helps preserve the original contract's legal framework while documenting important modifications. For public tender contracts or regulated industries, using a properly notarized Deed of Variation ensures compliance with government oversight requirements and provides clear audit trails.
What are the different types of Deed of Variation?
- Time Extension Variations: Used to modify contract deadlines, completion dates, or project milestones, especially common in construction and development agreements
- Payment Term Variations: Adjusts financial arrangements, installment schedules, or pricing structures in existing contracts
- Scope Modification Variations: Changes the work scope, deliverables, or service specifications while maintaining the original contract framework
- Party Amendment Variations: Updates party details, adds new parties, or modifies responsibilities in multi-party agreements
- Regulatory Compliance Variations: Incorporates changes required by new Indonesian laws or regulations into existing contracts
Who should typically use a Deed of Variation?
- Notaries: Prepare and authenticate Deeds of Variation to ensure legal compliance under Indonesian law
- Corporate Legal Teams: Review and customize variations to protect company interests and maintain regulatory compliance
- Business Owners: Initiate and sign variations to adapt contracts to changing business needs
- Project Managers: Request and implement variations, especially in construction and development projects
- Government Agencies: Review and approve variations for public contracts or regulated industries
- Contract Administrators: Manage the variation process and maintain documentation for audit purposes
How do you write a Deed of Variation?
- Original Contract: Gather the complete original agreement and any previous variations
- Change Details: Document specific terms being modified, including exact wording changes
- Party Information: Collect updated contact details and signing authority for all involved parties
- Supporting Documents: Prepare relevant permits, licenses, or regulatory approvals needed for the changes
- Notary Details: Schedule an appointment with a licensed Indonesian notary for document authentication
- Timeline Planning: Set clear deadlines for draft review, signing, and implementation of changes
- Registration Requirements: Check if the variation needs registration with specific authorities
What should be included in a Deed of Variation?
- Reference Details: Clear identification of the original contract being modified, including date and parties
- Recitals: Statement of parties' intention to vary the original agreement and their authority to do so
- Variation Terms: Precise description of modifications, including old and new clause wording
- Effective Date: Specific date when variations take effect
- Continuation Clause: Confirmation that unmodified terms remain in force
- Notarial Requirements: Standard notarial format and declarations under Indonesian law
- Execution Block: Full signing details for all parties, including corporate stamps where required
- Language Clause: Statement on Indonesian language version prevalence if bilingual
What's the difference between a Deed of Variation and a Deed of Rectification?
A Deed of Variation differs significantly from a Deed of Rectification in both purpose and application under Indonesian law. While both modify existing agreements, they serve distinct legal functions and are used in different scenarios.
- Purpose and Intent: A Deed of Variation deliberately changes agreed terms for future application, while a Deed of Rectification corrects errors or omissions in the original document
- Legal Effect: Variations create new binding obligations going forward, whereas rectifications retroactively fix mistakes to reflect original intentions
- Timing Impact: Variations take effect from the date of execution, but rectifications apply from the original agreement date
- Required Evidence: Variations need only mutual agreement on new terms, while rectifications must prove the original document contained genuine errors
- Notarial Requirements: Both need notarization in Indonesia, but rectifications require additional supporting evidence of the original intent
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