Which statement best describes a contract addendum?

Which statement best describes a contract addendum?

• A. It is a summary of a contract's main terms.
• B. It is an addition or supplement to a contract that modifies its terms.
• C. It is a form to terminate a contract.
• D. It is a separate document that replaces the original contract.

Answer: (B)

An addendum is a document attached to an existing contract to modify, clarify, or extend its terms while leaving the rest of the agreement in place. It serves as an official supplement that changes specific provisions, rather than summarizing the contract, terminating it, or replacing it with a new document. When both parties sign the addendum, those updated terms become part of the contract, ensuring everyone understands the new obligations or details, such as a changed deadline, price, or scope.

An addendum is a document attached to an existing contract to modify, clarify, or extend its terms while leaving the rest of the agreement in place. It serves as an official supplement that changes specific provisions, rather than summarizing the contract, terminating it, or replacing it with a new document. When both parties sign the addendum, those updated terms become part of the contract, ensuring everyone understands the new obligations or details, such as a changed deadline, price, or scope.