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It serves as an amendment or addendum to the original agreement, outlining the specific changes or additions agreed upon by the parties involved. Put another way, a supplemental agreement is like a trusty sidekick that joins forces with the primary agreement to enhance, modify, or expand its powers.
The key difference between a supplemental agreement and a contract amendment is that the first is a separate document that modifies the contract's terms. The original contract remains intact. A contract amendment, on the other hand, involves changing or updating certain parts of the main contract.
Supplemental agreements are typically created between a contract's effective date and end date, as it's common for parties to want to amend the terms of their relationship during this time. More specifically, a supplemental agreement is commonly used to add certain conditions to a contractual relationship.
Once all parties named in a contract agree to an addendum, it becomes a part of the new contract. A contract amendment, on the other hand, is a document that makes changes to an existing contract designed to correct it, better it, or ensure something in the original document gets clarified.
A supplementary contract is an agreement between a life insurance company and a policyholder or beneficiary by which the insurer retains the cash sum payable under the policy and makes payments in ance with the settlement option chosen.
An amendment can add to an existing contract, delete from it, or change parts of it. The original contract remains in place, only with some terms altered by way of the amendment. Keep in mind that when you're negotiating a contract, changes made during that process are not amendments.