Addendum vs. Amendment

Posted by RPost on March 7th, 2024

What is a Contract Amendment?

An contract amendment is a proper change, modification, or expansion to a current contractual agreement. This modification can include changes to terms, conditions, or some other limitations inside the first agreement.

Basically, a amendment effectively refreshes, explain, or extend the underlying terms of the agreement

What is a Contract Addendum?

Then again, an contract addendum is an extra report joined to the original contract. Unlike an amendment, an addendum doesn't modify the current terms yet supplements them.

It is a powerful method for consolidating new data or arrangements without altering the core parts of the initial agreement.

Addendum vs. Amendment in Real Estate

In real estate, the addendums vs amendments become particularly relevant. Let's explore the application of these terms in this context.

Real Estate Contract Amendment and Addendum

1. Adjusting Purchase Price: If there's a need to modify the purchase price outlined in the original contract, a real estate contract amendment is required.
2. Changing Closing Date: Amendments are useful for altering the agreed-upon closing date in real estate transactions.
3. Addendum for Additional Items: When adding items like furniture or appliances to the property sale, an addendum can be used.
4. Amendment for Structural Changes: If structural modifications are needed, such as changes to the property's dimensions, an amendment is more suitable.

Visit https://rsign.com/glossary/addendum-vs-amendment  for more information.