Contract addendum vs. amendment: Key differences.
Learn the basic definitions of these legal-contract terms and discover the differences in how they function within contracts.
Contract addendums and contract amendments sound similar — in some ways, they can deliver similar results. It’s important to recognize, however, that these two contract-law terms are unique and have incredibly different functions.
Ready to learn about contract addendums versus amendments? Keep reading to discover the definition of each term and how they function differently within contracts.
What exactly are contract addendums and amendments?
A contract addendum is a post-contract attachment that modifies, alters, or totally changes some of the terms of a previously established contract. Typically, this adds something new to a preexisting document. Once all parties named in a contract agree to an addendum, it becomes a part of the new contract.
A contract amendment, on the other hand, is a document that makes changes to an existing contract designed to correct it, better it, or ensure something in the original document gets clarified. In other words, an amendment alters the original terms and conditions of a contract by replacing a specific portion of that agreement.
Contract addendums vs. amendments: When to use each process.
These two distinct contract processes function as follows:
- An amendment is typically used to change something that’s part of an original contract. Think of amendments as modifications to the earliest agreement (for example, altering an agreed-upon deadline).
- An addendum is used to clarify and add things that were not initially part of the original contract or agreement. Think of addendums as additions to the original agreement (for example, adding a deadline where none existed in the original version).
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