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Deed of Variation
I need a Deed of Variation to amend the terms of an existing trust, specifically to change the distribution of assets among beneficiaries. The document should comply with Danish legal requirements and ensure that all parties involved consent to the changes.
What is a Deed of Variation?
A Deed of Variation lets parties legally change the terms of an existing contract or agreement under Danish law. When business circumstances shift or parties discover their original agreement needs adjusting, this document creates a formal record of their mutually agreed changes without having to draft an entirely new contract.
Under Danish contract principles, these deeds help companies adapt their legal obligations quickly and safely. Common uses include updating payment terms, extending deadlines, or modifying service requirements in commercial agreements. The deed must be signed by all involved parties and clearly state which parts of the original agreement are being modified while keeping other terms intact.
When should you use a Deed of Variation?
Use a Deed of Variation when you need to modify an existing contract without creating an entirely new agreement. This tool proves especially valuable when adjusting payment schedules, extending project deadlines, or updating service specifications in Danish commercial contracts. It's particularly useful for time-sensitive changes where drafting a new contract would be impractical.
The deed works well for straightforward amendments like changing delivery addresses, updating price indices, or adding new service requirements. Under Danish law, this approach saves time and money while maintaining legal certainty. Companies often turn to it during business expansion, when responding to market changes, or adapting to new regulatory requirements.
What are the different types of Deed of Variation?
- Basic Amendment Deed: Changes a single aspect of the original agreement, like updating payment terms or delivery schedules
- Multi-Party Variation: Modifies agreements involving three or more parties, commonly used in construction or joint venture contracts
- Omnibus Deed: Updates multiple related agreements simultaneously under Danish law, saving time in complex business relationships
- Conditional Variation: Makes changes that take effect only when specific conditions are met, useful for phased implementations
- Retrospective Deed: Formally documents changes that parties have already implemented in practice, ensuring legal compliance
Who should typically use a Deed of Variation?
- Contract Parties: Original signatories to the agreement who must all agree to and sign the Deed of Variation for it to take effect
- Legal Advisors: Danish lawyers who draft and review the deed to ensure compliance with local contract law and protect client interests
- Corporate Directors: Decision-makers who authorize changes to commercial agreements on behalf of their organizations
- Contract Managers: Professionals who identify the need for variations and coordinate the amendment process
- Compliance Officers: Internal specialists who ensure modifications align with regulatory requirements and company policies
How do you write a Deed of Variation?
- Original Agreement: Locate and review the complete contract you're modifying, including all previous amendments
- Change Details: List specific clauses being modified, with clear before-and-after comparisons
- Party Information: Gather current legal names and contact details for all signatories
- Authority Check: Confirm each representative has power to approve changes under Danish law
- Timeline Planning: Set effective dates for changes and coordinate signing schedule
- Documentation: Collect supporting evidence showing why modifications are needed
- Digital Platform: Use our template system to generate a legally compliant deed that includes all required elements
What should be included in a Deed of Variation?
- Identification Section: Full legal names and details of all original contract parties, plus reference to the original agreement
- Variation Specifics: Clear statement of which clauses are being modified, with old and new wording
- Effective Date: Precise timing for when changes take effect under Danish law
- Consideration Clause: Statement of mutual value exchange to make the variation legally binding
- Remaining Terms: Confirmation that unmodified original contract terms stay in force
- Governing Law: Reference to Danish jurisdiction and applicable regulations
- Execution Block: Signature spaces for all parties, with titles and dates
- Appendices: Any supporting documents or schedules detailing the changes
What's the difference between a Deed of Variation and a Deed of Rectification?
A Deed of Variation differs significantly from a Deed of Rectification in both purpose and application under Danish law. While both modify existing agreements, they serve distinct legal functions.
- Purpose: A Deed of Variation intentionally changes agreed terms for the future, while a Deed of Rectification corrects mistakes or errors in the original document
- Timing Effect: Variations typically work forward from a specific date, whereas rectifications apply retrospectively from the original agreement date
- Proof Requirements: Variations need only mutual agreement on new terms, but rectifications must prove the original document didn't reflect true intentions
- Legal Scope: Variations can introduce completely new terms, while rectifications must stick to fixing demonstrable errors
- Tax Implications: Variations may trigger new tax obligations, whereas properly executed rectifications maintain original tax positions
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