Last updated September 27, 2022
What is a Contract Addendum?
A Contract Addendum, also known as an amending agreement, is a document that modifies an existing contract without invalidating it. When possible, using an Addendum is often easier than creating a whole new contract.
You can use an Addendum to add, delete, or replace terms in a contract that’s already been signed. For example, you may need to change the names of the parties in a Real Estate Agreement. Or, an independent contractor might need an extension for completing a certain project.
In any case, the Contract Addendum makes the changes you need while maintaining the integrity of the original agreement. In other words, any terms that weren’t modified by the Addendum remain in place.
Is a Contract Addendum legally binding?
A contract must meet specific criteria for it to be legally binding and enforceable. Read more about the elements of a valid contract in our Guide to Signing and Managing Contracts.
To change a legally binding contract, everyone involved must give mutual consent. Putting the changes in writing and attaching them to the original agreement prevents confusion and potential disputes between the parties involved. Then, the parties can acknowledge their consent by signing the Addendum.
If a dispute occurs, an Addendum helps prove which terms the parties agreed to.
How to write an Addendum to a contract
Customize LawDepot’s Contract Addendum template to suit your situation. We’ll walk you through three essential steps, so you can feel confident that you’ve included the right information.
1. Describe the original contract
Give information about the original contract, including:
- It’s amendment history (if you've already amended it several times, consider creating a new contract)
- The jurisdiction in which the original contract applies (or the jurisdiction in which one of the parties resides)
- The names of the parties involved (individuals or corporations)
- The date that it took effect
- Its purpose
2. Make your amendments
LawDepot's form allows you to make up to five amendments in a single Contract Addendum.
Use clear and simple language when writing your amendments. If you need guidance, our template includes examples of the type of language you can use to write your amendment.
Be sure to reference the section or clause of the original contract that’s being altered. If you’re adding a brand new clause, explain where it will be inserted in the original contract.
3. Sign the document
Once all the parties review the document, they can sign their names to consent to the changes.
Do I need to notarize my Contract Addendum?
In most cases, you don’t need to notarize an Addendum.
However, you may wish to get a lawyer to review your Addendum to ensure that you use the proper language and that the terms don’t create unintended consequences. A lawyer can also confirm whether the amendment meets the criteria for a valid contract in your jurisdiction.
What’s the difference between an Addendum and a Waiver?
Generally, an Addendum modifies a contract, while a Waiver releases one party from the liabilities of a contract.
For example, if one party didn’t uphold a contract term, the other parties might agree to carry out the contract anyways.
Waiving a breach of contract can occur without an Addendum. The parties might agree verbally or use a Release of Liability.
