What distinguishes an amendment from an addendum in a contract?

An amendment is a legal modification that alters, adds, or deletes specific terms of an existing contract, thereby changing the original agreement between the parties. This distinction is crucial because amendments directly affect the initial terms of the contract, allowing parties to adjust their obligations or rights as circumstances change.

In contrast, an addendum generally serves as a supplement to the existing agreement and does not alter the original terms but rather adds new provisions or clarifications that coexist with the existing contract.

Understanding the roles of amendments and addenda is essential for interpreting contract modifications accurately and ensuring that all parties are clear on their obligations and rights as dictated by the updated or supplemented agreement. This understanding can help avoid potential disputes that arise from misunderstandings regarding the terms of contracts.