What Is a Contract Addendum?
A contract addendum is a form used to supplement an existing contract and change or remove specific terms. You can attach an addendum to edit and update contract terms without rewriting the agreement. This addendum allows you to add further details and requirements.
Legal Templates’s free addendum to a contract form makes it easy to keep contracts effective and up to date. Use our document to create a binding contract addendum.
Contract Addendum vs. Amendment
A contract addendum typically adds supplemental information to an agreement, while an amendment makes significant changes to a contract. In most cases, when the fundamental terms of the contract remain the same, an addendum can be used to add or edit the contents. If you want to make major changes to the core conditions of a contract, use an amendment. Evaluate the types and extent of changes in your contract to determine the best form for you.
Types of Contract Addenda
Depending on the type and purpose of your original contract, you can utilize specific and common addendum forms. Evaluate your needs and consider the following types of addenda to create an effective agreement.
Use a purchase agreement addendum to add new information to an existing purchase agreement
Addendum to Purchase Agreement
Supplement the terms and information in your lease with a lease agreement addendum
Lease Agreement Addendum
A commercial lease addendum allows you to add to the terms of an existing commercial lease
Commercial Lease Addendum
How to Write an Addendum to a Contract
Writing an addendum requires an in-depth understanding of the original contract terms and the intended changes. Create an effective, compliant addendum using the following steps.
1. Refer to the Original Contract
Begin by identifying which contract the addendum applies to. Include the type of contract and its exact name or title. Also, provide information regarding the contract’s effective date. You may also attach a copy of the current contract for easy reference.
2. Enter Party Details
Record the full legal name and address of each party who entered into the original contract and will also be held to the terms of the addendum. If either party operates as a business entity, note that here and include their full legal name. Also, identify whether the contract is a unilateral or a mutual agreement, and which parties are bound by its terms.
3. Define the Changes
Once you reference the original agreement and the parties involved, clearly define the changes being made via the addendum. In most cases, an addendum to a contract serves the following purposes:
- Replacing a section
- Modifying specific wording
- Adding a new clause
- Extending the contract duration
- Changing payment info
- Editing service descriptions
Select which actions your addendum will implement and add the new sections, terms, dates, or information.
4. Set Legal Terms
Note whether the original contract form included a choice of law clause, and define which state’s laws will apply to the agreements. Also include the addendum’s effective date to create a legal record of when the terms apply. Providing these governing terms ensures legal validity and proof of the terms in case of disputes.
5. Sign and Notarize
Once the terms of the addendum have been properly documented, each party involved should sign. These signatures signify their understanding and acceptance of the contract updates. If the original contract was notarized, the addendum will require a notary acknowledgment as well.
Sample Addendum to a Contract
Use Legal Templates’s free addendum to a contract for customizable terms and binding changes to an existing agreement. Our form, available in PDF and Word formats, makes it easy to add to a current contract to meet your needs.
