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What is a Contract Addendum?
A Contract Addendum is a document that makes changes to a contract without overriding or invalidating it.
Rather than terminating an existing agreement and starting over, simply create an Addendum and update the contract.
This template is general and can be applied to many different contracts, for example:
A Contract Addendum is also known as:
- Amendment and restatement agreement
- Amendment agreement
- Addendum to contract
- Addendum letter
What’s the difference between an addendum and an amendment?
By definition, an addendum adds terms that were not part of the original agreement, while an amendment modifies the existing terms.
You can use LawDepot’s Contract Addendum template to do both.
When should I use a Contract Addendum?
Addendums are helpful when you need to make minor changes to an existing contract.
Remember, you can only amend a contract after signing it. This may be to reflect a change in law, but more often it’s to accommodate the needs of one or both parties. For instance, a common reason for an amendment is simply to change a party's name.
You don’t need to make a Contract Addendum before signing a contract because the original terms aren’t effective yet. In this case, speak with the party responsible for drafting the document and make the changes there. Terms typically become legally binding once all parties sign the document.
Likewise, you cannot amend an expired contract because its terms are no longer effective. You’ll need to make a new contract.
Can you amend a contract verbally?
Some contracts are legally required to be in writing. A contract might also contain a clause that explicitly prohibits oral modifications.
But, even in situations where it is possible, it would likely be difficult to enforce.
Any contract—written or verbal—must contain certain elements to be legally binding. To enforce a term that the parties discussed but failed to document, you might struggle to prove the following legal requirements were met:
- Offer and acceptance: One party proposed a change and the other parties agreed.
- Consideration: All the parties gained something of value from the agreement.
- Intention: There was mutual intent to enter into a binding contract.
- Legality: None of the contract terms break the law.
- Capacity: The parties were mentally and legally capable of entering the agreement.
Without these elements, a court would likely void the amendment.
How do I write a Contract Addendum?
A Contract Addendum should include the following:
Make note of whether the contract has any previous amendments.
Then, state the names of the parties involved in the original contract, a description of its purpose, and the date it was signed.
When selecting a jurisdiction to apply to the amendment, consider using the same one in which the original agreement was meant to apply.
A clear description of the changes
In the United Kingdom, there is no limit to the number of times you can alter an agreement with a Contract Addendum.
However, LawDepot’s Contract Addendum only allows you to make up to five amendments in a single document. You can also use this template to insert brand-new clauses into the original contract.
Although our questionnaire provides sample text for guidance, remember:
- Use clear and concise language to ensure you don’t create terms with unintended consequences.
- Refer to the original document, especially when altering specific sections or clauses.
If you need to make more than five addendums for a contract, consider creating a new version of your original document and updating it with your most up-to-date terms.
Signing details
To legally execute an Addendum made with LawDepot, all parties involved in the original contract must review it and sign off on its terms.
For extra peace of mind, you can ask a legal professional to review the Contract Addendum before you sign it. This helps ensure that the changes reflect the best interests of all the parties involved.
Once properly signed, attach your Contract Addendum to the original agreement.
