As a professional, I have come across many instances where a contract needs to be amended or modified. In legal terms, this is referred to as an addendum. An addendum is a document that specifies changes that need to be made to an existing contract. It is a legally binding agreement that is added to the original contract and becomes a part of it. In this article, I`ll provide you with an example of an addendum to help you understand how it works.
Example Addendum:
This Addendum (“Addendum”) is made and entered into by and between [Insert Name of Parties] (hereinafter referred to as the “Parties”) on [Insert Date].
WHEREAS, the Parties entered into a contract (“Contract”) on [Insert Date] for [Insert Purpose of Contract];
WHEREAS, the Parties now desire to amend the Contract as set forth herein;
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows:
1. The following language is added to the Contract as a new provision:
[Insert New Provision Here]
2. The following language is amended in the Contract:
[Insert Original Language] is hereby amended to read [Insert Amended Language].
3. All other terms and conditions of the Contract shall remain unchanged and in full force and effect.
This Addendum shall be deemed a part of the Contract and any reference thereto shall be construed as a reference to the Contract as amended hereby.
IN WITNESS WHEREOF, the Parties have executed this Addendum as of the date first above written.
[Insert Signatures of Parties]
Why Use an Addendum?
Contracts are legally binding agreements between two parties that specify the terms and conditions under which they agree to conduct business. However, as business circumstances change, it may be necessary to modify the terms of the original contract. Rather than drafting an entirely new contract, an addendum is a cost-effective way to amend the original agreement. An addendum ensures that the original contract remains intact while also reflecting any changes that have been made.
Conclusion
In conclusion, an addendum to a contract is a legally binding document that specifies changes to an existing contract. Using an addendum is a cost-effective way to modify the terms of the original agreement without starting from scratch. The example addendum provided in this article is just one of many possible variations, but it should give you a sense of how an addendum works. Remember to consult a legal professional if you have any questions or concerns about modifying a contract.