Drafting Addendum to Agreement

A contract addendum is a document that is added to an existing contract to modify the terms of the agreement. If properly executed, the original contract will remain in full force and effect and will only modify the specific conditions described in the addendum. Note that any changes to an existing contract that are not incorporated into a separate document are a change, not an addendum. If you have entered into a legal contract, an addendum to the contract is any document added after signing the agreement to change its terms while the rest of the contract remains intact. This can also be called a contract modification or amendment agreement; however, a change is usually not made with a separate document. Specify the date on which the addendum takes effect. If you don`t, the parties won`t know when the new wording will come into play. Supplements are only enforceable if they comply with the existing contractual conditions. Many contracts provide for certain circumstances in which the terms may be changed.

Review the original contract and look for conditions that prohibit addenda, allow one party to amend the contract without the other party`s consent, or impose requirements for addenda. Consider having a lawyer review all contract changes, especially for deals that involve large sums of money or last more than a few months. You will also need to exchange another asset or promise to ensure that the addendum has consideration and is therefore a valid contract. Consult a lawyer if you are not sure that the consideration is necessary, as this depends on both state law and contract law. Follow these guidelines when drafting your addendum: An addendum to the contract defines the definitions, sections, clauses and conditions that must be amended, and all parties must accept and sign them. The language of an addendum is sometimes tricky, as the law requires all contracting parties to adhere to the original language. For this reason, you need to make sure that you do not create unintended consequences or flaws with the addendum. If you add certain conditions while maintaining the validity of the original contract, you must create an addendum. However, some types of changes do not require an addendum. This includes cases where one party has agreed to waive a breach of contract by the other party.

This is called consent or waiver, which means that the parties agree to continue a contract despite the negligence of a minor clause. To draft a contractual addendum, start with a title that links the addendum to the original contract by writing something like "Addendum to the employment contract of January 2, 2018". Then say, "This agreement is between .." and specify the parties and the date on which the addendum takes effect. Next, list each part of the original contract that will be modified and note the specific addition, deletion, or change you make. After that, you create signature and notary blocks with spaces for names and dates. For more advice from our legal examiner on how to ensure your addendum complies with your contract, read on! When you have completed the drafting of the addendum and it is signed and notarized, attach it to all copies of the original contract. By attaching the two documents, anyone who will review the document in the future will know that the document is more than the original contract. A modification of the contract is linked to the original contract and modifies the initial conditions. It replaces the specified part of the original contract.

Use a modification to change the details of the original contract once it has been executed by both parties. For example, use a change if both parties agree to extend the term of the agreement. In the case of works or supply contracts, an amendment refers to the amendments made before the contract was awarded; a change is the name of any change made after the contract has been awarded. Below are the reasons for writing an addendum. However, this list is not exhaustive. A contact addendum is a document that is used to make one or more changes to an existing contract or agreement without invalidating it. An addendum to the contract is added to the original contract or agreement as a separate document. Before we get into the key elements of an addendum, always remember that clarity is crucial. .