Addendum

AAA

DEFINITION of 'Addendum'

An attachment to an a document such as an insurance policy that changes the original policy conditions, either to include or exclude coverage. The addendum becomes part of the legal contract.

INVESTOPEDIA EXPLAINS 'Addendum'

In insurance, endorsement is an addendum attached to the original policy that alters or replaces the previous provisions.

In real estate purchase agreements, an addendum is a document containing any changes or modifications negotiated in the original lease. Usually, an addendum is attached to the signed lease, as a part of the lease, and describes financing terms and property inspection requirements.

For contracts, if the addendum alters a contract, which has already been signed by all parties, it is known as an amendment.

RELATED TERMS
  1. Adhesion Contract

    A contract in which one party has substantially more power than ...
  2. Contract Month

    The month in which a futures contract expires. The contract can ...
  3. Breach Of Contract

    Violation of any of the agreed-upon terms and conditions of a ...
  4. Contract Holder

    An individual or organization who owns the rights to a debt or ...
  5. Insurance

    A contract (policy) in which an individual or entity receives ...
  6. Interest-Crediting Methods

    A credit method that determines how interest changes to a fixed ...
Related Articles
  1. Solutions For Concentrated Positions
    Investing Basics

    Solutions For Concentrated Positions

  2. How To Invest In Commodities
    Investing Basics

    How To Invest In Commodities

  3. Sugar: A Sweet Deal For Investors
    Sectors

    Sugar: A Sweet Deal For Investors

  4. An Introduction To Managed Futures
    Options & Futures

    An Introduction To Managed Futures

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center