VocabuLaw

Variation

What is it and what does it mean?

Description of the legal term Variation:

Variation in the context of UK law generally refers to the legal process by which the terms of an existing agreement, court order, or legal obligation are altered or amended. This modification can be effected by the agreement of all parties involved, or by the order of a court where the court has jurisdiction to make such a change. It is a concept that exists in various areas of law, including contract law, family law, and trust law, allowing parties to adapt to changed circumstances or correct errors without necessarily discharging the original agreement or order.

In contract law, a variation is the formal process of changing one or more terms of a contract. It must be agreed upon by all parties to the original contract and should be executed with the same formalities, especially if required by law, such as in writing or by deed. This ensures that the changes are enforceable. A contract might be varied to extend the term of the agreement, alter the scope of services to be provided, or change payment terms, among other possibilities.

In family law, particularly in relation to financial settlements on divorce or dissolution of civil partnerships, a court order may be varied to take account of significant changes in circumstances. For instance, if the original order included maintenance payments that are no longer appropriate because the recipient’s financial situation has dramatically improved or worsened, the paying party may seek a variation of the order to increase, decrease, or even terminate maintenance payments.

Similarly, in the context of trust law, a variation might occur when the beneficiaries of a trust agree to change the terms of the trust, often requiring court approval especially if any of the beneficiaries are minors or not yet born. This allows for the trust to be administered in a way that is more appropriate to changing family or economic circumstances.

To be legally effective, a variation must be supported by consideration – something of value being exchanged – unless it is made by deed. The doctrine of consideration is fundamental in contract law, ensuring that a variation is not the result of duress or fraud, but is rather a mutual agreement with each party offering something new as part of the amended terms.

Legal context in which the term Variation may be used:

Consider the example of a commercial contract between a manufacturer and a supplier. Originally, the supplier agrees to deliver a certain quantity of raw material on a monthly basis for a fixed price. Over time, global commodity prices increase dramatically, making the contract costly and unsustainable for the supplier. To avoid breaching the contract or stopping deliveries altogether, the supplier may approach the manufacturer to renegotiate the terms. After negotiations, they agree to a variation of the contract which adjusts the price in line with the current market rates. To enforce this modification, both parties sign a written agreement that outlines the new terms, including the revised pricing and any changes to delivery schedules or quantities, ensuring that the variation is legally binding.

Another context in which variation is significant is the area of wills and inheritance. After the death of the testator, the beneficiaries under the will might find that the division of assets is no longer appropriate due to changes in circumstances or tax laws. They may agree to vary the distribution of the estate to benefit from tax savings or to provide a more equitable distribution among the beneficiaries. This is commonly done through a deed of variation, which must be completed within two years of the death. It allows the beneficiaries to rearrange or redirect their inheritance accordingly, effectively rewriting the will for certain purposes, including tax.

Understanding variation and its proper application is fundamental to ensuring legal relationships remain fair and applicable over time. Contracts and legal obligations that cannot be adapted as circumstances change would soon become obsolete or unjust. Variation provides a mechanism for the legal system to balance the principles of certainty and agreement with the need for flexibility and fairness.

This website is for informational purposes only and may contain inaccuracies. It should not be used as a substitute for professional legal advice.