What is a contract amendment?

Learn more about contract amendments, and how the introduction of one can affect your existing business agreements.

A contract amendment is a change, correction, clarification, or deletion to an agreement you have already signed.

An amendment leaves your original agreement substantially intact. However, you can use an amendment to clarify details that were left out before, or to address a new need that became apparent after the contract was originally entered into.

When to use a contract amendment.

Contracts are a vital part of building business relationships and completing business transactions. Sometimes, though, your situation might change or conditions might evolve to the point that modifications to the original signed agreement are required. This can occur days or even months after the initial contract was signed.

When this is the case, an amendment can then be introduced that modifies the original agreement. All of the original parties to the contract must review, agree to, and sign the amendment.

The difference between a contract amendment and an addendum.

Often, the terms “amendment” and “addendum” are used interchangeably. Both can alter the terms of an agreement, but they are vastly different.

An amendment will alter an aspect of your original agreement. An addendum, however, will add something that was not part of the original contract. It is important to understand the distinction between the two, so you fully understand the details that you’re agreeing to.

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