When it comes to legal contracts, it`s not uncommon for parties involved in a negotiation to want to modify or add to the original agreement. In such situations, an addendum may be used to make the necessary changes.
So, what is an addendum? Simply put, it is an additional document that is attached to the original contract that outlines the new terms. This can be used to make changes to any aspect of the contract, from the scope of the work to the payment terms.
Now that we`ve established what an addendum is, let`s dive into the steps on how to add one to a contract.
Step 1: Review the original contract
Before adding an addendum, it is important to make sure that you have thoroughly reviewed the original contract. This will ensure that the new terms are in line with the existing agreement.
Step 2: Draft the addendum
Once you`ve reviewed the original contract, it`s time to draft the addendum. The addendum should clearly outline the changes being made and should reference the original contract by date and title.
It`s important to ensure that the addendum is written in clear and concise language to avoid any confusion or misunderstandings later on.
Step 3: Get it signed by all parties
Once the addendum has been drafted, it`s time to get it signed by all parties involved in the negotiation. This includes both parties that are making the changes and any third parties that may be affected by the new terms.
It`s important to make sure that all parties sign the addendum before any changes are made to the original contract.
Step 4: Attach the addendum to the original contract
After the addendum has been signed, it should be attached to the original contract. This can be done by stapling or binding the two documents together.
It is also a good idea to make copies of both the original contract and the addendum and distribute them to all parties.
In conclusion, adding an addendum to a contract is a straightforward process that involves careful review of the original document, clear drafting of the addendum, obtaining signatures from all parties involved, and attaching the addendum to the original contract. By following these steps, you can ensure that any changes made to the contract are valid and legally binding.