Johnny purchases a house, doesn't want furniture left behind. He signs Tuesday, changes mind Thursday, calls agent to add furniture to contract. What is this?
Correct Answer
C) An addendum
The correct answer is an addendum because Johnny is adding a new term — the inclusion of furniture — to the purchase contract after signing but before the transaction closes, which is the classic use case for a CAR Addendum to Purchase Agreement (form APAA). An addendum adds new provisions or terms that were not originally part of the contract, distinguishing it from an amendment, which modifies or changes terms that already exist in the contract. Since the original contract contained no furniture clause, this is an addition of new content, making 'addendum' the precise and correct classification.
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