Addendum

A document used to modify, add to, or clarify terms in the purchase agreement after it has been executed by all parties.

When Its Used

Used any time parties need to change terms of the contract after acceptance, such as extending deadlines, modifying price, or adding conditions.

Key Sections

Reference to original agreement; Specific terms being modified; New terms or conditions; Date and signatures of all parties

Common Mistakes

Not getting all parties to sign; Vague language about changes; Not referencing the specific contract section being modified; Using addendum instead of counter during negotiations

Pro Tip

Be specific about what's being changed and how. Reference specific paragraph numbers. All parties must sign for the addendum to be effective.