Annex (Annex to a contract)

The following is a short introduction to an annex to a contract. The most important thing is that the annex is anchored and described in the main agreement’s text.

What is an annex to a contract?

An annex to a contract is one or more documents, that constitute an immediate extension of a contract. At times, a contract can be kept very short, e.g. if it is designed after a framework contract or if it is a copy of an earlier contract. An annex has no fixed significance in contract law - only after it is anchored and included in the main agreement it refers to.

Annexes are often used for practical reasons; e.g. in large-scale contracts. Often, there are also more technical reasons - these could be price lists, licensing terms, schedules, promotional material and product descriptions, for instance. They are therefore often used in complicated and technical agreements - e.g. big purchase and sales agreements.

However, there are other purposes for an annex. They are sometimes used to add a form of documentation of the agreement process. Other times, it can specify how to interpret the agreement.

An annex is not to be confused with an additional agreement. These are used to amend or prolong conditions in an already concluded agreement.

Annex within an agreement’s text

The most important aspect about an annex is that it is anchored in the text, meaning that it is described in the agreement text. This may be done using an annex list. First and foremost, it is necessary to include the annex in the agreement and to make sure, that the annex does not disappear from the agreement. This way, there can be no doubt about whether the document was known at the moment of entering into the agreement.

If the annex is not anchored in the agreement’s text, it may end up losing legal meaning. By using Contractbook, you can automatically attach one or several annexes to your contract. That way, the documents are stored together digitally and there is no room for doubt about the annex’s legal status.

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