Sooner or later, written contracts may get modified, updated or revised due to changes in the business terms or changes in the circumstances. Rather than re-write the whole contract we sometimes draft an additional document that becomes part of the contract. Sometimes we call it a amendment, sometimes it’s called an addendum. What is the difference?
An amendment typically changes one or more terms of the contract. For example, in a long term supply contract for oil, the price per gallon may be changed by amendment. The original price is replaced by a new price term. The contract is thus changed.
An addendum typically adds a term to the contract that was not present originally. An example would be a contract to deliver office supplies to a business at its current office location. If the business opens a satellite office, an addendum might be used to add the new location to the contract. (The contract terms stay the same – with the additional location also included.)
One other change to contracts is called a “novation” – where a new contract wholly replaces an existing contract.
— BBC&B
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