DEFINITION of 'Amendment'
1. A change to one of the terms of a contract. Any type of contract can be amended, and any clause in a contract can be amended by the mutual agreement of both parties.
2. A change to an existing or proposed law.
BREAKING DOWN 'Amendment'
1. A common type of amendment is to extend the term of a contract. An amendment might also change pricing, deadlines or ownership rights. The parts of the contract that are not amended remain in force. If the contract needs significant changes, it may be better to create a new contract than to amend the existing one.
2. If the Senate is trying to create a new bill, numerous amendments to the originally proposed bill may be created as Democrat and Republican senators try to create a bill that enough senators can agree on for the bill to pass.