In Texas real estate, what is the difference between an amendment and an addendum to a contract?
Correct Answer
D) An addendum is attached at the time the contract is executed; an amendment modifies the contract after it has been executed
An addendum is attached to the contract at the time of execution to add terms or address specific situations. An amendment is used after the contract has been executed to modify existing terms that the parties want to change.
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Related Topics & Key Terms
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Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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