Most cannabis businesses have to amend written cannabis contracts on a regular basis. And many of them do it all wrong. Today, I’ll look at some of the key issues cannabis businesses must consider in amending cannabis agreements.
First off, any halfway decent cannabis contract will have an amendments provision. These clauses only permit amendment or modification (1) in a written form (2) signed by both parties. Sometimes they’ll require only the signature of the affected party. But the bottom line is that it must be a signed, written document to be valid.
There can of course be exceptions to this rule. It’s common in litigation to see arguments made that a course of conduct or action after an oral amendment evidences an amendment. The law in many jurisdictions allows these kinds of arguments, though the party making the claim bears the burden of proving it. So even if it’s possible to argue that parties amended a contract, it’s must easier (and saves lots of time/money) to just do it in writing. Handshake deals are almost always bad and can be lead to some of the biggest mistakes out there.
Parties who go the written route usually do one of two
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