What is a contract addendum?
Take a closer look at what contract addendums are and how they can offer flexibility and versatility to an already established contract between parties of two or more.
An original contract, though legally binding, doesn’t always cover the scope of what two or more parties might need it to do. When this happens, people turn to contract addendums to create more flexibility, or alter details and adjust deadlines. But what exactly are contract addendums and how can adding them be useful? Read on to learn more.
What exactly is a contract addendum?
Basically, it’s an after-the-fact addition to an already signed legal agreement. Technically speaking, a contract addendum is an attachment to an initial contract that either adds details, changes terms or includes something new that wasn’t included in the original.
Why are contract addendums useful?
Many parties view contract addendums as useful tools because they offer more flexibility, can extend the terms both parties already agreed to, change details, and replace specific parts of the original. Essentially, addendums make it easier to make adjustments because they’re an additional document — meaning the initial agreement doesn’t need to be thrown out or re-written.
Instead, the contract addendum is a one or two-page document that works in conjunction with the current agreement. That being said, they do have caveats — it’s not as simple as one party wanting to make a change and then doing it. Both parties must agree to, draw up, and sign an addendum for it to be legally recognized.
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