ContractsIntermediateAlabama Exam

An addendum to a real estate contract:

AReplaces the entire original contract
BAdds to or modifies the terms of the original contractCorrect
CCancels all contingencies automatically
DIs not legally binding unless notarized, as a general rule

Why Adds to or modifies the terms of the original contract Is Correct

Answer B: Adds to or modifies the terms of the original contract

An addendum adds to or modifies specific terms of the original contract and, when signed by all parties, becomes part of the binding agreement.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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