Before starting a discussion on Addendum to a Purchase & Sale Agreement, we should know what exactly an addendum is. An addendum is an addition to any written contract that includes additional information about the terms and conditions of the contract.

As per contract law, a contract is all that it has written in it. Any condition or clause that has been discussed verbally will hold no value until it is mentioned in the written contract. Therefore, in order to incorporate additional aspects of the agreement, you need to produce a separate addendum that is attached to the original purchase and sales agreement.

In this article, we will share some tips on how to prepare an addendum to a purchase and sales agreement.

  • When you have the job of writing an addendum to a purchase and sale agreement, the first thing you ought to do is to read the prior or original contract. This is important because all your modifications will be made based on the existing agreement.
  • Once you have read the purchase and sale agreement, you must mention exactly which agreement should the addendum be attached. This you can do by naming the parties to the purchase and sale agreement and the date of execution of the agreement.
  • The next step is to add the require details to the addendum that is missing in the purchase and sale agreement but needs to be incorporated. However, you must be careful that no clause clashes with the terms and conditions of the original agreement.
  • Once all the additions have been made, you will have to execute the document by ensuring all the parties to the purchase and sale agreement, sign the addendum, while signing the agreement. To make the addendum more enforceable, we would suggest you get them signed before witnesses and get it notarized as well.
  • This signed addendum will now help in clarifying many questions that the parties to the purchase and sale agreement may have about the agreement, like specific work to be done, or to the conditions and modes for payment.
  • In case a situation arises, where you need to modify a contract after it has been executed, you will have to design a contract amendment.
  • One of the ways a contract can become void is if an assumed precondition of the contract turns out to be untrue. If this is the factor motivating an addendum, it’s safer to start over with a new contract.

An addendum elaborates on the offer made by the seller to the buyer. It gives a clearer picture about what all is being offered to the buyer. It is a part of the purchase and sale agreement and is a legal document. One purchase and sale agreement can have as many addendum as required and they all stand valid in the court of law.


Leave a Reply

Your email address will not be published.