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The word addendum originates from the Latin word addere which means “to add”. Therefore, an addendum is an addition to any piece of writing, it may be a book, a document or a publication which modifies, adds and classifies a particular part of the written original work. On major role of an addendum is that it should be added and written before the documents are given and executed. Once it is being added completely on the document, it is considered to be a part of the whole document.

Addendum is basically used in many legal agreements to specify, add and elaborate conditions included in the contract. For instance, real estate transactions utilize addendums to specify home and financial inspection needed for securing a mortgage. A renter might need to sign an addendum written in the lease contract if there are special rules like a situation of allowing him or her to bring a pet in the house. In the industry of construction, an addendum can be utilized during the primary binding to explain more terms and rules provided in the contract.

Once the addendum is added already in the contract, it is usually signed with the presence of some witnesses just like the original contract. In some cases, the contract is being notarized. Through signing, the different parties involved in the agreement indicate that they all agree to the outlined stipulations. In some cases, affixing a signature may not be required since the document is not merely a contract. For instance in architecture, it may be composed of drawings that modify and clarify a project. Another example is the book which may contain an addendum that explains some other parts of it like the appendix.

In some cases, an addendum is sometimes confused to as an amendment but in the real sense, the two differs in terms of its additions. The main difference of the two is that an addendum is added before any document is performed and executed; on the other hand, an amendment is added after a document is performed and executed. Furthermore, an addendum is typically agreed upon, and is signed if it is considered to be a part of the contract and it is presented to be a part of the original written document, while an amendment is added any time once the original document has been shown and presented, thus, it is mainly used to change whatever is added to the original document. Therefore, both terms have their individual specifications and purposes that are not interchangeable.

Prior to addendum, it is important that both parties involved in the context of the document both agreed to it. This is to ensure that both parties understand what is indicated in the document. This is also important to avoid any misunderstanding that may lead to a more complex problem such as bringing it into court. It is also important that the signer reads every single detail of the document as well as the addendums to avoid deception.