Contracts and the documents holding these contracts are important as they hold the relation between two companies in peace and harmony. The rules or norms mentioned in the contract is 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 that were 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.
Amendment vs Addendum
The main 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 two companies or organizations. This is referred to making changes or modifications to a document.
Addendums are the addition of a separate document with additional information and note that one couldn’t add before. Once an addendum is made, it becomes a part of the legal document and cannot be changed.
Comparison Table Between Amendment and Addendum
|Parameters of Comparison||Amendment||Addendum|
|Meaning||This means that making modifications or changing information from an existing and approved document.||This means an addition of another document to an existing one in the form of information.|
|Purpose||It serves the purpose of making an addition, correction or alteration in the existing document. It can also refer to including supplementary documents.||The purpose of adding addendum is to add specific additional information or notes of either party that was not mentioned earlier.|
|Contract||Amendments are considered to be a part of the legal contract only until further negotiation by either party. So, amendments are open for negotiation and further changes.||An addendum, once added, is considered to be a part of the legal and binding document. For any changes to made or the contract to be further signed, the addendum is to be included or it would 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.||An addendum can be made by any person as it is only an addition of specific information that could not be added earlier.|
|Occurrence||These are most commonly witnessed in the corporate communication world.||Addendums are made commonly 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 require to go through a process before being legally included in it.
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 as correction or modification of a document. Often, these amendments include supplementary information to the original documents.
Through amendments, one can make any type of addition to a document. In the case of real estate document, the amendment can be made to the rent or requirements of the house.
What is Addendum?
An addendum is additions made to the document. These can be made by anyone belonging to either of the concerned party. The only requirement as the procedure is for it to be approved.
They can be used to add information or notes that are 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 often added as a separate or supplementary document to the original legal and binding document. Since they become part of the document, it can be legally shown in courts as proof and is considered above amendments.
Often addendums are the result of either party forgetting to add specifications or want to add after the experience. This is also used in the case of omitting of specific parts from the draft.
Main Differences Between Amendment and Addendum
- Amendments are addendum 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 an addition of another document to an existing one. There are no modifications made but only additional information.
- 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. Addendum serves a different purpose. They are used for adding specific additional information or notes that either of the party was not able to mention before.
- Though both are initially considered as part of the legal and binding document, there can be changes with regards to the difference between the two. The addition of amendments is negotiable. So they are included in the contract only until negotiation and is further decided that it is not needed. 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 by.
- A document cannot be amended in anyone’s free will. There is a specific procedure and there are specific individuals who can do it. These are usually the person/ people who have signed the original legal document where the amendment is to be made. Addendum, on the other hand, can be added by anyone as it is only additional information in a new document that is to be attached.
- 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.
Amendments are modifications made to a document whereas addendum is an addition of information. Since they are different and cannot be used in place of the other, they have different purposes and applications.