Contract Addendum Template Sample: Everything You Need to Know
A contract addendum template sample is a good thing to utilize when wanting to add an addendum to your contract. 3 min read
2. Contract Addendum: An Overview
3. Helpful Tips When Writing a Contract Addendum
4. What Happens if Several Addendums are Written?
Contract Addendum Template Sample
A contract addendum template sample is a good thing to utilize when wanting to add an addendum to your contract. Specifically, a contract addendum is a previously agreed upon addition to the original contract. Before drafting the addendum, both parties should look at some templates to familiarize themselves with the process of how the addendum should be written and what should be included in it.
Contract Addendum: An Overview
A contract addendum will identify additional terms, clauses, and provisions that will modify the original contract but will still keep the original contract in full force.
Such addendums can be difficult to write, as contract law identifies that all parties must abide by the original contract as it stands. However, in order to prevent having to write brand new contracts, the law allows the original parties in the agreement to add addendums to the original agreement. But keep in mind that when writing the addendum, it cannot be an amendment to the contract, as this would be an amendment and not an addendum.
The goal when drafting an addendum is to change only a portion of the contract and not the contract as a whole. The addendum cannot be one-sided and must be specifically agreed upon between both parties before being written and signed.
Helpful Tips When Writing a Contract Addendum
Below are some helpful tips when drafting a contract addendum. You should use these tips as a guideline when sitting down with the other party to include language in the addendum:
- Keep the style consistent with how the original contract is written, as the language must be similar to that in the original contract
- The original contract and addendum must appear to be linked to one another
- Use the same margins, font, etc.
- Reference the date of the original contract when creating the addendum
- Title the document so that everyone knows that it is the addendum of the original contract, i.e. Contract Addendum of Original Contract Dated xx/xx/xxxx
- The addendum should have an introduction paragraph as to why the addendum is being written and how it will effect the original contract
- Include the date when the addendum will take effect
- Include a conclusion paragraph that details what is being changed
Description of the Addendum
You should also describe the addendum, paying particular attention to what clauses or provisions in the original contract are being rewritten in the addendum. You should include redlines, strikeouts, or simply describe the changes so that it is clear which provisions in the original contract will no longer be legally binding.
Be Specific in the Agreement
You will also want to ensure that the addendum language clearly identifies whether it modifies or replaces the original contract language. For example, some addendums will include language that will modify the original terms and also introduce brand new terms. If that is the case, then you should be specific as to which terms are being modified, which terms are enhancements to the original provisions, and what part of the addendum is brand new.
Proofread the Agreement
Once you have completed the draft of the addendum, both parties will need to go over it together to ensure consistency and agreement. Thereafter, you’ll need to sign the addendum, include your title, and enter the date when signed. You’ll also want to be sure that everyone is in agreement as to when the addendum will take effect. As previously noted, this should be expressly identified in the addendum. If the addendum won’t take effect until a future date, be sure to identify as such. If the addendum will take effect immediately, a sentence should be written indicating that the addendum will take effect on the date when the agreement is signed. It is also helpful to have a notary sign the agreement, which will further its legality and validity.
What Happens if Several Addendums are Written?
There could certainly be situations when several addendums are written between the parties. If that is the case, then you will want to number each addendum, i.e. Addendum No. 1, Addendum No. 2, etc. After signed, the addendum should be kept on file so any party can refer back to the addendum when needed.
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