The name of this kind of contract is quite self-explanatory. In a compensation agreement, the parties indicate the amount paid to the other party in compensation for the completion of a deed. Because the compensation agreement is designed to be the subject of a currency change, these agreements generally contain a detailed payment schedule and how payments are made. Sometimes the endorsement is just an exchange of letters and the focus is on solving the immediate problem instead of ensuring that the rest of the project goes smoothly. If this is the case, the difficult question of which document should prevail over others in the event of a conflict must be taken into account. At this stage, it is also important that any document purporting to amend the previous agreement adopts, as far as possible, the same terminology that is consistent with the previous agreement and that is clear as to the intent of the additional agreement. An endorsement (SA) is a formal agreement between the parties to amend the contract. Complementary agreements are far from being a quick solution to certain business problems or needs. They must be carefully studied, thought out and elaborated if they are not to cause more problems than they solve. In a way, nothing is worse than a dispute over a settlement agreement or an endorsement, because the parties have, by their nature, tried to agree and conclude things and not spend money and administration time on litigation.

Beware of exchanging letters or an agreement on the back of a package that cannot settle or dissolve anything. It is important to note that compensation agreements can be made between companies or between a company and an individual. For example, a compensation agreement may be developed to explain payments made to an individual for contract consulting work.