The Addendum To Purchase And Sale Agreement is a crucial legal instrument used in Indian property transactions when parties need to modify their original agreement without drafting an entirely new contract. This document becomes necessary when circumstances change after the initial agreement, such as adjustments in purchase price, payment terms, closing dates, or property specifications. It must comply with Indian contract law, including the Indian Contract Act, 1872, Transfer of Property Act, 1882, and relevant state property laws. The addendum ensures continuity of the original agreement while incorporating necessary changes, making it particularly valuable in complex property transactions where flexibility is required. It's commonly used in both commercial and residential property deals and must be properly executed with appropriate stamps and possibly registration, depending on the nature of modifications.
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1. Parties: Identification of all parties to the original Purchase and Sale Agreement, including their legal names, addresses, and any relevant registration numbers
2. Background: Reference to the original Purchase and Sale Agreement including its date of execution, brief description of its purpose, and reason for this addendum
3. Definitions: Key terms used in the addendum, incorporating definitions from the original agreement and any new terms introduced
4. Amendments: Specific modifications to the original agreement, clearly identifying sections being modified and new language
5. Effect on Original Agreement: Statement confirming that all other terms and conditions of the original agreement remain in full force and effect
6. Governing Law: Confirmation that the addendum is governed by Indian law, consistent with the original agreement
7. Execution: Signature blocks for all parties, including date and place of signing
1. Additional Consideration: Include when the modifications involve changes to the purchase price or payment terms
2. Time Extensions: Used when modifying any deadlines or timeframes in the original agreement
3. Modified Property Description: Include when changes affect the description of the property being sold
4. Conditions Precedent: Used when adding or modifying conditions that must be met before closing
5. Representations and Warranties: Include when adding or modifying any representations or warranties
6. Regulatory Compliance: Used when modifications require additional regulatory approvals or compliance measures
7. Dispute Resolution: Include when modifying dispute resolution procedures from the original agreement
1. Schedule A - Modified Terms: Detailed list of specific terms being modified from the original agreement, with old and new language clearly marked
2. Schedule B - Revised Property Details: If applicable, updated property descriptions, specifications, or boundaries
3. Schedule C - Revised Payment Schedule: If applicable, modified payment terms or schedules
4. Appendix 1 - Supporting Documents: Any new certificates, permits, or documents relevant to the modifications
5. Appendix 2 - Regulatory Approvals: Copies of any additional regulatory approvals required for the modifications
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