When drafting a legal agreement, parties may need to make changes or additions to the original document after it has been executed. In such cases, an addendum is created to make the necessary modifications. An addendum is a separate document that supplements the original agreement and serves as a record of the changes made.
In this article, we will provide an example of an addendum to an agreement and discuss its importance.
Example of an Addendum to an Agreement
Suppose that Company A and Company B entered into a contract for the sale of goods. After the contract was signed, Company A discovered that the delivery date would be delayed by three weeks due to unforeseen circumstances. Company B agrees to the delay and suggests adding an addendum to the contract to reflect the change.
The addendum may be drafted as follows:
ADDENDUM TO AGREEMENT
This addendum (“Addendum”) is made on [date] by and between Company A, a [state/country] corporation with its principal place of business at [address] (“Seller”), and Company B, a [state/country] corporation with its principal place of business at [address] (“Buyer”).
WHEREAS, the parties entered into a contract for the sale of goods (“Agreement”) on [date];
WHEREAS, Seller has informed Buyer that the delivery date of the goods will be delayed by three weeks due to unforeseen circumstances;
NOW, THEREFORE, the parties agree as follows:
1. The Agreement is amended to reflect that the delivery date of the goods will be extended by three weeks. The new delivery date is [date].
2. Except as provided in this Addendum, the terms and conditions of the Agreement remain unchanged and in full force and effect.
3. This Addendum constitutes a binding modification to the Agreement and is hereby incorporated into and made a part of the Agreement as if fully set forth therein.
IN WITNESS WHEREOF, the parties have executed this Addendum as of the date first above written.
[Signatures of both parties]
Importance of an Addendum
An addendum to an agreement is important because it allows parties to modify the terms of an original agreement without having to create a new contract. This is especially useful if the original agreement has already been executed and parties do not want to go through the entire process again.
Addenda are also useful in situations where parties need to make minor changes or additions to an agreement that do not affect the overall intent of the contract. By creating an addendum, parties can make these changes without having to draft a whole new agreement.
Addenda are a valuable tool in contract law that allow parties to modify the terms of an original agreement. When drafting an addendum, it is important to make sure that the changes or additions being made are clearly stated and do not conflict with the original agreement. With this example and information, parties can create an addendum that effectively supplements their original agreement.