Which document is used to add special clauses to a contract?

Which document is used to add special clauses to a contract?

• A. Deed
• B. Title insurance
• C. Addendum
• D. Mortgage note

Answer: (C)

To add new terms to an existing contract, you use an addendum. An addendum is a document that’s attached to the contract and, once signed by all parties, becomes part of the agreement. It’s used to introduce extra clauses, contingencies, or clarifications without rewriting the whole contract. In contrast, a deed transfers property ownership, title insurance protects against title defects, and a mortgage note is the borrower's promise to repay the loan. If you were changing terms that are already in the contract rather than adding new ones, you’d typically use an amendment instead.

To add new terms to an existing contract, you use an addendum. An addendum is a document that’s attached to the contract and, once signed by all parties, becomes part of the agreement. It’s used to introduce extra clauses, contingencies, or clarifications without rewriting the whole contract.

In contrast, a deed transfers property ownership, title insurance protects against title defects, and a mortgage note is the borrower's promise to repay the loan. If you were changing terms that are already in the contract rather than adding new ones, you’d typically use an amendment instead.