What is the Difference Between Addendum and Amendment?

The main difference between an addendum and an amendment lies in their purpose and how they modify a contract. Here are the key distinctions:

Addendum:

• An addendum is an additional document attached to the original contract, used to include supplementary information, such as additional terms, conditions, or clarifications.
• It does not modify the existing terms of the contract but rather expands upon them.
• Addendums are typically used when parties wish to incorporate new details without disrupting the core elements of the original agreement.
• Examples of addendums include addressing financing terms, defining property inspection requirements, or clarifying specific terms within the original document.

Amendment:

• An amendment is a change to the original contract that alters some of its original clauses or sections.
• It modifies the existing terms and conditions of a contract by replacing a specific portion of the original agreement.
• Amendments are generally used to change something that's part of an original contract, such as altering an agreed-upon deadline.
• Examples of amendments include changing the pricing structure, extending the contract duration, or altering key obligations.

In summary, an addendum is used to add new information or clarify existing terms without altering the core elements of a contract, while an amendment is used to change the existing terms and conditions of a contract.

Comparative Table: Addendum vs Amendment

Here is a table highlighting the differences between an addendum and an amendment:

In summary, an addendum is a separate document that adds to or extends the terms and conditions of a contract without altering the original terms and conditions, while an amendment is a change made to the original contract that modifies some of its clauses or sections.