What is an addendum in the context of contracts?

An addendum is understood as an addition to a contract that does not alter the pre-existing terms of the agreement. It serves the purpose of incorporating new provisions or stipulations while leaving the original terms intact. Utilizing an addendum is a common practice in various contractual relationships, as it allows parties to adapt to changes or add details without undergoing the lengthy negotiation process of drafting an entirely new contract.

In contexts where certain elements may need specification or clarification, such as in real estate transactions or service agreements, an addendum can stipulate these new components succinctly. This provides clarity without disrupting the existing framework of rights and obligations laid out in the original contract. Hence, this definition aligns closely with the nature of contracts and their amendments in legal practice.