When it comes to legal contracts, sometimes the terms and conditions may need to be amended. This is where an addendum comes in. An addendum is a separate document attached to the original contract, which contains additional terms, conditions, or changes. Here`s how to add an addendum to a contract.
1. Determine if an addendum is necessary
Before you begin drafting an addendum, make sure it`s necessary. Review the original contract and identify the areas that need adjustment. It`s important to ensure that the original contract allows for amendments and the specific process for making changes.
2. Create the addendum
Once you`ve determined an addendum is necessary, create a new document. Include a title that identifies it as an addendum to the original contract.
3. Include the original contract information
In the addendum, reference the specific terms and sections of the original contract that the addendum pertains to. You can also include the date the original contract was signed and the parties involved.
4. State the reason for the addendum
Clearly state the reason for the addendum. If there are any new terms or conditions, provide a full explanation of what they entail and why they`re necessary.
5. Include the new terms or changes
If the addendum includes new terms or changes, include them in full detail. This includes any monetary changes, dates, or specific details that need to be addressed.
6. Sign and date the addendum
Once the addendum is complete, both parties must sign and date it. This indicates that both parties agree to the new terms or changes.
7. Keep records
Make sure to keep a copy of the addendum and the original contract on file. This is important in case any disputes arise in the future.
In conclusion, adding an addendum to a contract is a straightforward process. However, it`s important to ensure that the original contract allows for amendments and the specific process for making changes. By following these steps, you can easily add an addendum to a contract and ensure a clear understanding between parties.