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The Addendum To Change Purchase Price is essential in commercial transactions where parties need to modify the originally agreed purchase price without altering other contract terms. This document is commonly used in Indian business practice when market conditions, economic factors, or mutual agreement necessitate price adjustments. It must comply with Indian contract law requirements, particularly the Indian Contract Act, 1872, and may require registration under the Registration Act, 1908, depending on the nature of the original agreement. The addendum typically includes the original and new purchase price, effective date of the change, and any related payment term modifications. It's particularly crucial in long-term contracts where price flexibility is needed or when circumstances require price adjustments due to market changes, cost escalations, or other agreed factors.
