What does the term "Addendum" refer to in a contract?

The term "Addendum" in a contract specifically refers to a supplemental part or section that is added to the existing document. Its purpose is to provide additional information, clarify specific terms, or modify existing clauses without altering the entire contract. An addendum can address changes that arise after the initial document is drafted, making it essential for accommodating evolving agreements between the parties involved.

In contrast, other options focus on different aspects of a contract. An automatic renewal clause relates to the duration and renewal process of the agreement, not a supplemental modification. A section for future updates implies a mechanism for ongoing changes rather than a specific addition, while a summary of key points serves to outline important terms without adding new content. Thus, the choice about a supplemental part or section aligns perfectly with the definition and function of an addendum in contractual contexts.