Amendment vs Addendum: Difference and Comparison

Contracts and the documents holding these contracts are important as they hold the relationship between two companies in peace and harmony. The rules or norms mentioned in the contract are to be followed accordingly.

But not all the norms mentioned in a contract can be followed. So one should be allowed to make changes or add norms not mentioned earlier.

This is the purpose of making amendments or addendums in a document. But it is important to know the difference if one must know which one to use.

Key Takeaways

1. An amendment modifies, deletes, or adds to an existing legal document or agreement, while an addendum adds new information without changing the existing document.
2. An amendment requires the consent of all parties involved, while an addendum may be added by one party without the agreement of others.
3. An amendment becomes a permanent part of the original document, while an addendum is added as a separate page or section.

Amendment vs Addendum

The difference between Amendment and Addendum is that amendment is a modification or addition of information to an existing document. The addendum is an addition of another document to an existing document. Amendments do not require a separate document.

Amendments are mainly used in corporate companies and organizations where contracts are signed between companies or organizations. This is referred to making changes or modifications to a document.

Addendums include a separate document with additional information and note one couldn’t add. Once an addendum is made, it becomes a part of the legal document and cannot be changed.

Comparison Table

Parameters of Comparison	Amendment	Addendum
Meaning	This means making modifications or changing information from an existing and approved document.	This means adding another document to an existing one in the form of information.
Purpose	It serves the purpose of adding, correcting, or altering the existing document. It can also refer to including supplementary documents.	Adding an addendum is to add specific information or notes of either party that was not mentioned earlier.
Contract	Amendments are considered a part of the legal contract only until further negotiation by either party. So, amendments are open for negotiation and further changes.	Once added, an addendum is considered a part of the legal and binding document. For any changes to be made or the contract to be further signed, the addendum must be included, or it will remain invalid.
Authority to add	Only the individual/ individuals who have signed the document are allowed to make amendments to the document. Any other individual is not allowed to do so.	Any person can make an addendum as it only adds specific information that could not be added earlier.
Occurrence	These are most commonly witnessed in the corporate communication world.	Addendums are commonly made in the literacy world.

What is Amendment?

Amendments are changes made to a document. These changes can only be made by the people who have signed the document and must go through a process before being legally included.

An amendment is made due to various reasons. One being factual correction and another being legal provisions. Even typing errors in such documents are corrected by introducing amendments.

An amendment can also be called a correction or modification of a document. Often, these amendments include supplementary information to the original documents.

Through amendments, one can make any addition to a document. In the case of real estate documents, the amendment can be made to the rent or requirements of the house.

What is Addendum?

An addendum is an addition made to the document. These can be made by anyone belonging to either of the concerned party. The only requirement for the procedure is for it to be approved.

They can be used to add information or notes specific to one party. Once approved, their position in a document is not negotiable. They become an inevitable part of the contract or document.

The addendums are added as separate or supplementary documents to the original legal and binding document. Since they become part of the document, they can be legally shown in courts as proof and are considered above amendments.

Often addendums result from either party forgetting to add specifications or wanting to add after the experience. This is also used when omitting specific parts from the draft.

Main Differences Between Amendment and Addendum

1. Amendments are addendums that have different meanings. Amendments are modifications or changes made in an existing and approved document. These changes are made in the form of information. But in the case of an addendum, it means adding another document to an existing one. There are no modifications made but only additional information.
2. The main purpose of making an amendment is to be able to modify, alter, add or make corrections to the document. It is also used for including a supplementary document within the approved document by modifying the rules. An appendix serves a different purpose. They are used for adding specific information or notes that neither party could mention before.
3. Though both are initially considered as part of the legal and binding document, there can be changes in the difference between the two. The addition of amendments is negotiable. So they are included in the contract only until negotiation, and it is further decided that it is unnecessary. An amendment can be removed. Whereas, once an addendum is made in a contract, it becomes a permanent part of the contract that has to be adhered to.
4. A document cannot be amended of anyone’s free will. There is a specific procedure, and specific individuals can do it. These are the person/ people who have signed the original legal document where the amendment is to be made. On the other hand, an Addendum can be added by anyone as it is only additional information in a new document to be attached.
5. Amendments are frequently made in the corporate communication world where contracts, in the form of documents, are signed between two companies or organizations. Addendums are much more commonly made in the literacy world.

References

1. http://ejournal.worldconference.id/index.php/neutron/article/view/46
2. https://www.nature.com/articles/s41586-018-0722-x