Purchase and Lease Contracts Flashcards
(2 cards)
What is the difference between an amendment and an addendum?
An amendment is a change to an existing contract. For example, the parties may agree to change a closing date or alter a list of personal property items included in the sale. Anytime words or provisions are added to or deleted from the body of the contract, the contract has been amended. Amendments must be signed or initialed by all parties.
On the other hand, an addendum is any provision added to an existing contract without altering the content of the original. An addendum is essentially a new contract between the parties that includes the original contract’s provisions “by reference”; that is, the addendum mentions the original contract. An addendum must be signed by both parties. For example, an addendum might be an agreement to split the cost of repairing certain flaws discovered in a home inspection.
