As a copy editor with experience in search engine optimization (SEO), it`s important to accurately use legal terminology when writing about contracts and agreements. Two terms that often cause confusion are „supplemental agreement” and „amendment.” In this article, we`ll explore the differences between these two terms and when to use them.
Supplemental Agreement
A supplemental agreement is an additional document that is added to a contract to modify or clarify specific terms. It is also known as an addendum. A supplemental agreement is typically used when parties want to add new obligations or clarify existing obligations that were not explicitly stated in the original contract. It can also be used to correct mistakes or errors that may have been made in the original agreement.
For example, let`s say that two companies entered into a contract to provide a service. If the service needs to be modified to include more features, the two companies can use a supplemental agreement to add those features. The supplemental agreement would be added to the original contract and become part of the legal agreement between the parties.
Amendment
An amendment is also an additional document that is added to a contract to modify specific terms. However, an amendment is used when parties want to change an existing term or condition in the original contract. An amendment can add, delete, or change a provision in the original agreement.
For example, if a contract between two parties includes a clause that specifies a delivery date, an amendment can be used to change the delivery date to a later time. The amendment would be added to the original contract and become part of the legal agreement between the parties.
Differences Between Supplemental Agreement and Amendment
The main difference between a supplemental agreement and an amendment is the purpose for which they`re used. Supplemental agreements are used when parties want to add new obligations or clarify existing obligations that were not explicitly stated in the original contract. Amendments, on the other hand, are used when parties want to change an existing term or condition in the original contract.
Another difference is the way they`re added to the original contract. A supplemental agreement is added to the end of the original contract, while an amendment is inserted into the original document and changes the existing terms.
When to Use Supplemental Agreement or Amendment
When drafting a contract, it`s important to consider when to use a supplemental agreement or an amendment. If parties want to add new obligations or clarify existing obligations, a supplemental agreement is the appropriate document to use. On the other hand, if parties want to change an existing term or condition in the original contract, an amendment is the appropriate document to use.
Conclusion
In conclusion, while both supplemental agreements and amendments are important documents used to modify existing contracts, they serve different purposes. Supplemental agreements are used to add new obligations or clarify existing obligations that were not explicitly stated in the original contract. Amendments are used to change an existing term or condition in the original contract. As a professional, it`s crucial to use these legal terms accurately to ensure clear and concise communication in legal documents.