Where this fits on the exam
| Official syllabus topic | Contracts: Addenda, Amendments, and Contract Changes |
|---|---|
| Official PSI area | Contracts |
| Published weight | 19% of the national portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual comparison. Use the source, document, actor, event, and timing stated in the question before applying a memorized definition.
Side-by-side comparison
Read across each row. The terms are deliberately compared on identical dimensions so the difference remains clear when the exam hides the vocabulary inside a scenario.
| Decision dimension | Addendum | Amendment |
|---|---|---|
| Function | Adds supplementary terms or material to the agreement package | Changes an existing contract term |
| Typical timing | At formation or as part of the documents initially agreed | After an existing agreement is formed |
| Example | Financing or property-condition addendum incorporated into the offer | Written change to closing date or price after binding agreement |
| Legal requirement | Must be incorporated and agreed as required | Needs mutual agreement, authority, consideration where required, and required form |
Decision rule
Georgia-specific distinction
Worked example
Scenario. After a binding Georgia purchase agreement, buyer and seller sign a form moving closing from September 10 to September 24.
Reason it through. The parties are changing an existing contract term after formation.
Answer. The document functions as an amendment.
Common exam traps
- Using page count to classify the document
- Assuming labels override legal effect
- Changing a contract without all required agreement
- Letting a licensee give legal-effect advice
Original practice questions with detailed explanations
These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Two weeks after a Georgia purchase agreement became binding, the buyer and seller sign a document moving the closing date from September 10 to September 24. How is this document best classified?
- A. An addendum, because it adds a new page to the contract
- B. A counteroffer, because it proposes a different closing date
- C. An amendment, because it changes a term of the binding contract
- D. An assignment, because it transfers the closing to a new date
Show answer and explanation →
Answer: C. An amendment, because it changes a term of the binding contract
An amendment changes a term of a contract that already exists, and this document changes the closing date after the agreement became binding. The counteroffer answer looks plausible, but a counteroffer comes before acceptance and rejects the offer, while here the original contract stays binding and only the date moves.
- A. Incorrect. Adding a page is not the test. This signed document changes the closing date of a contract that was already binding.
- B. Incorrect. A counteroffer responds to an offer before acceptance. These parties are changing their existing contract by mutual agreement.
- C. Correct. The existing closing date is replaced after contract formation. That makes the document an amendment in substance.
- D. Incorrect. Assignment transfers contractual rights to another party. Moving a date does not transfer anyone's rights.
Question 2A buyer's offer is delivered with a signed financing addendum and a property-condition addendum attached, and the seller accepts the whole package. What role do those attachments play?
- A. They are amendments that change terms of the accepted contract
- B. They are addenda that supplement the agreement as it is formed
- C. They have no effect until both parties sign a separate amendment
- D. They are counteroffers that the seller accepted with the offer
Show answer and explanation →
Answer: B. They are addenda that supplement the agreement as it is formed
An addendum adds terms or information to the agreement package, usually when the contract is formed. These pages came with the offer and were accepted with it, so they are part of the original agreement. They are not amendments, because nothing already binding was changed.
- A. Incorrect. An amendment changes an existing agreement. These attachments were accepted as part of the original contract package.
- B. Correct. The financing and property-condition addenda supply terms to the offer accepted by the seller, so they supplement the agreement as formed.
- C. Incorrect. Acceptance of the package incorporates the agreed attachments. A later amendment is unnecessary merely because terms appear on separate pages.
- D. Incorrect. The attachments accompanied the buyer's offer. They do not constitute a separate rejection and replacement of an earlier offer.
Question 3A form in a Georgia sale is titled "Addendum," but it was signed after the contract became binding and it lowers the price by $5,000. What decides how the document is treated?
- A. The title at the top, because form labels decide the category
- B. The page count, because longer documents count as amendments
- C. The licensee's view of what the parties most likely intended
- D. Its effect and timing, since it changes a term after formation
Show answer and explanation →
Answer: D. Its effect and timing, since it changes a term after formation
Forms use labels loosely, so the document's legal effect and timing decide the category, not its heading. A signed price reduction after the contract is binding works as an amendment. Trusting the label is the trap, and if the parties dispute what the document does, that question belongs with an attorney rather than the licensee.
- A. Incorrect. A heading is evidence of a label, not the document's legal operation. A later signed price change can function as an amendment.
- B. Incorrect. Page count does not determine whether terms supplement formation or change a binding agreement.
- C. Incorrect. The signed terms and timing control. A licensee's guess about intent cannot resolve a disputed legal effect.
- D. Correct. The document reduces the price after formation. Its effect is an amendment even though the form calls it an addendum.
Ready to move on?
You have this distinction down when all of these are true.
- Define every compared term without using the other term as the definition.
- Rebuild the comparison table from memory.
- State the decision rule and Georgia distinction without notes.
- Solve the worked example after changing one key fact.
- Explain the rule or fact that makes each distractor wrong.
- Answer all three original questions correctly in mixed practice on a later day.
Recommended next lesson
Continue with Assignment Versus Novation. An amendment changes a term between the same parties, and the next page asks what happens when a party itself is swapped out: an assignment can leave the original buyer liable, while a novation releases that buyer.
Return to the complete exam-concept library or the Contracts hub.