Contract addendums and contract amendments sound similar — in some ways, they can deliver similar results. It’s important to recognize, however, that these two contract-law terms are unique and have incredibly different functions.
Ready to learn about contract addendums versus amendments? Keep reading to discover the definition of each term and how they function differently within contracts.
What exactly are contract addendums and amendments?
A contract addendum is a post-contract attachment that modifies, alters, or totally changes some of the terms of a previously established contract. Typically, this adds something new to a preexisting document. Once all parties named in a contract agree to an addendum, it becomes a part of the new contract.
A contract amendment, on the other hand, is a document that makes changes to an existing contract designed to correct it, better it, or ensure something in the original document gets clarified. In other words, an amendment alters the original terms and conditions of a contract by replacing a specific portion of that agreement.
Contract addendums vs. amendments: When to use each process.
These two distinct contract processes function as follows:
- An amendment is typically used to change something that’s part of an original contract. Think of amendments as modifications to the earliest agreement (for example, altering an agreed-upon deadline).
- An addendum is used to clarify and add things that were not initially part of the original contract or agreement. Think of addendums as additions to the original agreement (for example, adding a deadline where none existed in the original version).
What About Appendices, Change Orders, Order Forms, and Other Documents
As one considers when and where to use an addendum or amendment, the dialogue naturally extends itself to additional contract document types such as appendices, change orders, and order forms. This list is certainly not exhaustive and can include a variety of other document types as well - likely industry-specific document types which behave similarly to appendices, change orders, and order forms.
In its singular form, it is referred to as an appendix, while in its plural form, appendices. Like an addendum, it is a supplemental document that is referenced in the original agreement which introduces additional legal or commercial terms. Change Orders, as their name suggests, are a contract vehicle which is leveraged to change information contained within an agreement. As this document type changes terms and conditions, it is considered an amendment. Order Forms, which are generally leveraged to place additional orders for products or services, change existing quantities, and are thus, generally treated as an amendment. Other documents can be viewed in the same light; if they introduce additional terms and conditions as the time of the contract signature, they fall under the addendum umbrella. If they change existing terms and conditions, require a signature, and take place after the execution of the original agreement, they behave like an amendment.
