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Here's what you SHOULD and SHOULDN'T do when you rectify a written contract

by , 10 October 2013
A written contract can be rectified if it doesn't accurately reflect the actual or apparent agreement between the parties. There must, however, be a valid contract in the first place for rectification to be possible. Read on to discover the dos and don'ts of rectification so you can ensure your business complies with tax laws.

While it's accepted that a written contract can be rectified, there are certain guidelines the Practical Tax Loose Leaf Service says you must comply with to avoid being on the wrong side of tax law.

Here's a checklist of the four dos and don'ts of rectification

#1: Rectification is the correction of the written record.

#2: It doesn't allow for the addition of terms to which the parties may have agreed after the signing of the contract.

#3: According to the Practical Tax Loose Leaf Service, omitted words can be added, superfluous words can be deleted and incorrect words can be replaced so that 'the mistake may yield to the truth of the matter and effect can be given to the actual intention of the parties'.

#4: The party who claims rectification bears the onus of proving that the parties reached an agreement. And that the written contract doesn't accurately reflect that agreement and the extent of the agreement between the parties.

Well there you have it. Keep these dos and don'ts for rectification in mind. They may come in handy one day when you need to rectify a written contract.

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