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Learn when you should use an addendum or an amendment for managing contracts with critical details related to payment or performance.
An addendum adds new information or clauses to a signed contract, while an amendment makes changes to a signed contract. An addendum usually serves to clarify or append further details without altering the original agreement’s terms.
Unlike an amendment, a contract addendum does not modify the existing terms of the contract, but rather it expands upon them. Addendums are typically used when parties wish to incorporate new details without disrupting the core elements of the original agreement.
A contract amendment vs addendum are terms used when changing or adding to an original document. An amendment makes changes to an already existing agreement whereas an addendum adds an additional document to the existing agreement.
Key takeaways: An addendum typically provides additional information without altering the original document’s terms. Amendments, on the other hand, introduce major changes to the original agreement’s terms. Addendum: Useful for adding supplementary details, such as clarifications, schedules, or attachments.
Ideally, the contract addendum ensures amendments are made to the initial contract while leaving it intact. In addition, the contract addendum is legally binding. Contract addendums act as post-contract attachments, which allow you to alter or modify any previous terms on an existing contract.
As such, an addendum is a separate supplemental document (physical or digital) that is attached to the primary agreement. Amendment, on the other hand, means to change or fix (think “mend”). A contract amendment, therefore, is a modification to the existing terms of the agreement.
While a contract addendum and amendment are similar in purpose, they are two different concepts that require separate workflows and assignees. Make sure you understand the difference and know when to use each.
Learn the meaning of an addendum and the main differences between addendum vs amendment to streamline your business contract needs.
An addendum adds new terms to a contract while preserving the original terms, while a contract amendment replaces or modifies existing terms. Effective management of amendments and addendums is critical to ensuring clear communication between parties and avoiding disputes.