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Supplementary Agreement
I need a supplementary agreement to amend the existing contract with a supplier, detailing additional services to be provided, revised payment terms, and an extended delivery timeline. The agreement should ensure compliance with UAE regulations and include a clause for dispute resolution through arbitration.
What is a Supplementary Agreement?
A Supplementary Agreement adds new terms or changes existing ones in an original contract, keeping the main agreement valid while updating specific parts. In the UAE, businesses often use these to adapt their contracts when circumstances change, like extending a lease period or adjusting payment terms under UAE Civil Code provisions.
These agreements play a vital role in UAE commercial relationships by offering a flexible way to modify contractual obligations without starting over. They must follow local contract law requirements, including proper documentation in Arabic when dealing with government entities, and both parties need to clearly agree to the changes for the supplement to be legally binding.
When should you use a Supplementary Agreement?
Use a Supplementary Agreement when you need to modify an existing contract without creating an entirely new one. Common situations in UAE business include extending lease terms, adjusting payment schedules, adding new services to ongoing contracts, or updating pricing structures in response to market changes.
This tool proves especially valuable for UAE government contracts where maintaining continuity is crucial, or when quick amendments are needed to reflect changing business conditions. It helps preserve existing relationships while adapting to new requirements, saving time and resources compared to full contract renegotiation. Many UAE companies use these agreements during project expansions or when adding new specifications to construction contracts.
What are the different types of Supplementary Agreement?
- Time Extension Supplements: Commonly used in UAE construction and rental agreements to extend contract duration without changing other terms
- Payment Modification Agreements: Adjust payment terms, schedules, or amounts while keeping core contract intact
- Scope Change Supplements: Add or modify deliverables in service contracts, particularly common in government and construction sectors
- Party Addition Agreements: Bring new parties into existing contracts while maintaining original terms with current parties
- Location or Asset Amendments: Modify specific property details or asset information in commercial agreements
Who should typically use a Supplementary Agreement?
- Contract Parties: Original signatories to the main agreement who need to modify terms through a Supplementary Agreement
- Legal Consultants: UAE-licensed lawyers who draft and review supplements to ensure compliance with local laws
- Corporate Legal Teams: In-house counsel managing contract modifications for large UAE organizations
- Government Entities: Public sector bodies that frequently use supplements to modify existing contracts with suppliers
- Business Managers: Department heads who initiate and negotiate changes to existing agreements based on operational needs
How do you write a Supplementary Agreement?
- Original Contract Review: Locate and analyze the existing agreement, noting specific clauses needing modification
- Change Documentation: List all required modifications with clear reasoning and supporting evidence
- Party Details: Gather updated contact information and authority confirmation for all signatories
- Arabic Translation: Prepare for mandatory Arabic versions when dealing with UAE government entities
- Compliance Check: Verify changes align with UAE Civil Code requirements and original contract terms
- Digital Platform: Use our system to generate a legally-sound Supplementary Agreement that includes all required elements
What should be included in a Supplementary Agreement?
- Reference Details: Clear identification of the original agreement being modified, including date and parties
- Amendment Scope: Precise description of which original terms are being changed, added, or removed
- Effective Date: Specific timing for when the supplementary changes take effect
- Ratification Clause: Statement confirming all unmodified terms remain valid and binding
- Language Requirements: Arabic version for government contracts as per UAE law
- Signature Block: Authorized signatories' details and execution requirements under UAE Civil Code
- Governing Law: Explicit reference to UAE law jurisdiction and application
What's the difference between a Supplementary Agreement and a Contractual Agreement?
A Supplementary Agreement differs significantly from a Contractual Agreement in both purpose and application within UAE law. While both are legally binding documents, they serve distinct functions in business relationships.
- Timing and Independence: Supplementary Agreements modify existing contracts, while Contractual Agreements establish new, standalone legal relationships
- Scope of Coverage: Supplementary Agreements only address specific changes to original terms, whereas Contractual Agreements cover all aspects of a business arrangement
- Legal Prerequisites: Supplementary Agreements require a valid primary contract to exist first, but Contractual Agreements can be created independently
- Enforcement Context: Changes in a Supplementary Agreement are interpreted alongside the original contract, while Contractual Agreements stand alone in UAE courts
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