What is the correct way to amend a contract?

In business and legal procedures, there are many situations in which it is necessary to correct the contents of important documents such as contracts. When amending a contract, it is important to use an appropriate correction method and do it in a way that everyone can understand. However, there are several ways to amend a contract, and you may be wondering which method is appropriate. In this article, we will explain in detail the correct way to amend contracts and other important documents.
By reading this article, you will know what to be careful about when using correction stamps and throw away stamps, and what to do when multiple people sign and stamp their names, and you will be able to respond with confidence in business and legal procedures. You will be able to.

Correct way to amend a contract

The correct way to correct a contract is to use a correction stamp or a stamp. Regardless of which method you choose, if the corrections have been signed and stamped by multiple people, you will need to prepare correction stamps for everyone.
In addition, in the case of electronic contracts, correction stamps and throw away stamps cannot be used, so either create a memorandum of change (amendment) or create a contract with new contents and conclude it.

Correction method using correction mark

When using a correction mark, cross out the erroneous part with a double line and write the correct content nearby. For example, if the kanji in the wording of a contract is incorrect, draw a double line over the incorrect letter and write in the correct letter. The correction will be made clearer by placing the correction mark as close to the corrected part as possible.

Correction method using sutein

In the method using a sutein, a HANKO is affixed in advance in the margin of the contract. If an error is found, the stamp can be used as a correction stamp. Write something like ``Deletion of 〇〇 characters'' or ``Addition of 〇〇 characters'' in the corrected area, and write it right next to the stamp.
A stamp serves the same purpose as a correction stamp, but there is a risk of it being misused, so make a copy of the contract and keep it. By storing the original documents in advance, you can handle any changes made to the contents without your permission.
When making corrections using saku-in, it is important to understand the points to be careful of when using saku-in. Use the same HANKO you used to sign and affix your name.

Points to note when amending a contract

The contract specifies the terms and conditions of the transaction. As you proceed with your business, it may be necessary to change the contract details once decided, or to revise the contract. The contract contains important information, so be careful when making amendments, paying attention to the following points:

If the stamp is stamped, make a copy to prevent it from being corrected without permission.

Corrections using stamps may result in unauthorized corrections or falsification. This is because a HANKO can be stamped in the margin of the contract in advance and the stamp can be used as a correction stamp.
If there are any corrections to be made, they can be corrected using a pre-sealed HANKO, so a third party could use the seal to make arbitrary changes to the contract and add disadvantageous conditions. You can do it.
It is important to limit the use of stamp stamps to contracts with parties you trust, such as those with whom you already have a business relationship, and to be very careful when handling documents with stamp stamps. Also, keep a copy of the contract in case any unauthorized amendments are made.

Only "simple corrections" can be made.

Only simple corrections are permitted in contracts. Simple corrections are small changes such as typos or correcting numbers. Changing the content of the contract into something completely different is not considered a simple correction.
If you want to make significant changes to the contract, you will need to create a new contract.

Use the same HANKO as the one used for signing and stamping the correction stamp and stamp.

It is advisable to use the same HANKO used for the correction stamp and sacrificial HANKO as the one used for signing the name and stamping. This will make it clear that the correction was made by the person concerned, which will prevent trouble.

If multiple people have signed and stamped their names, prepare correction stamps for everyone.

If you are amending a contract that has been signed and stamped by multiple people, you will need as many correction stamps as the number of people who agreed to the document. This is because you can confirm that everyone agrees on the corrections, reducing the possibility of problems occurring later. Therefore, when making corrections, be sure to prepare correction stamps for everyone.

If it is an electronic contract, create a memorandum.

In the case of electronic contracts, it may be difficult to print out the contract and make corrections, and it may not be possible to affix a correction stamp. We recommend that you create a memorandum to keep track of the corrections you have made. This will clarify the agreement on the revised content and prevent trouble.

Various questions and points to note regarding amending the contract

Here we will provide detailed explanations of frequently asked questions and points to note regarding contract amendments.

Are there any parts of the contract that cannot be amended?

There is no part of a contract that cannot be amended. If it is a simple correction, most parts can be corrected by using a correction stamp or stamp. Even if the contract has already been signed or stamped, items can be added, deleted, or changed with the mutual consent of both parties.
It is common to have both parties sign a contract to prove that they have mutually approved the amendments, after making sure that the contents before the amendments are clear. If you want to make significant changes to the contents of the contract, such as adding items, you should exchange memorandums or amendment contracts.

Can I use any HANKO to use as a correction seal?

It is recommended that the HANKO used for corrections be the same as the one used to stamp the contract. The correction stamp certifies who made the correction and how, and it is important to use the same HANKO that was stamped on the contract in order to prove that the contracting party made the HANKO.

Can I use Shachihata (name stamp) as a correction stamp?

The HANKO used as a correction seal must be the same as the HANKO stamped on the contract. Therefore, Shachihata cannot be used to correct important documents stamped with a bank seal or registered seal. However, for minor corrections such as typos, you can use Shachihata (name stamp).
Due to its structure, Shachihata can be stamped continuously, but the stamp surface is made of rubber and is not durable, so the impression may change. If your seal impression changes, you cannot prove your identity.
Also, because they are not carved by hand, they have the same seal surface. Due to this background, correction using Shachihata may not be possible.

What if there is no space to write corrections or stamp?

It is best to place your seal as close to the corrected area as possible, but if there is not enough space, you can also place your seal in an empty space. If there is no space to write the corrections or affix a seal, prepare a postscript sheet, write the corrections, and affix the correction seal.
The addendum form must be clearly marked as ``Additional form,'' and must include the number of pages in the contract, the date, and any corrections.

Can I make corrections as many times as I want?

There is no limit to the number of corrections you can make, and you can make them as many times as you like. When making multiple corrections, be sure to understand the history and content. By keeping a history, you can avoid losing track of how you made corrections. If it is difficult to read the text with a correction mark placed on a double line, place the correction mark not too far from the corrected part so that you can see where you have made the correction.

Is it okay to use a small correction stamp as a correction HANKO?

There are no particular regulations regarding the size of the correction stamp. A smaller stamp will be easier to see because it will be pressed directly above or next to the corrected area. However, when using it to correct important documents, etc., the same HANKO must be used.
There are several shapes of HANKO, such as round and oval (oval), but there is no problem in using any shape. Be sure to mark the corrections clearly so that they are easy to see.

What if a clause is added or the contract contents are changed instead of being corrected?

If the contents of the contract are changed or clauses are added, a new contract must be created instead of a correction stamp. When changing a contract, the parties must state what has been agreed upon by the parties, and sign and affix their seals.

What happens when there are multiple parties to a contract?

If there are multiple parties to the contract, correction stamps for all parties are required. This is because you can confirm that everyone agrees on the corrections, reducing the possibility of problems occurring later. Therefore, when making corrections, be sure to prepare correction stamps for everyone.

Is a correction stamp unnecessary before the contract is signed?

Even before the contract is signed, if there are any corrections, it is advisable to stamp the corrections. This will ensure that there is a clear agreement on the content of the corrections, which will prevent problems later. However, if there are many amendments made before the contract is signed, it may be better to draw up a new contract.

summary

In this article, we explained the correct way to amend a contract. When amending a contract, you must understand the questions raised and points to note, and make corrections in an accurate and appropriate manner. When using correction stamps or stamps on important documents, it is especially important that you use the same HANKO that was used to write your name and affix your seal.
Additionally, if you wish to amend a document that has been signed and stamped by multiple people, you will need the HANKO of all the members who agreed to the document. Please contact Hanko Shop 21 if you have any questions or concerns regarding the HANKO used for correction or the HANKO . Hanko Shop 21 has stores all over the country and provides one-stop services, from answering questions about HANKO to creating original HANKO and creating business HANKO.