Supplement: Definition, Example and Related Terms
What is a Supplement ?
In the world of business and commercial contracts, a supplement is a document that adds to, or 'supplements', an existing contract. It's like a bonus chapter to a book you already have. This 'bonus chapter' or supplement doesn't replace your original book (or contract), but adds more information or details to it. A supplement can change parts of the contract or add new parts. It's important because it helps businesses make changes to a contract without having to start from scratch.
Example(s)
Scenario Description A business has a contract with a software provider to maintain and update their software. The business has grown and needs additional services from the software provider. The business and the software provider could create a supplement to the original contract. This supplement would list the additional services and any changes in cost. Both parties would need to sign the supplement to show they agree to the changes. A company has a contract with a marketing agency. The company wants to add a new product to their marketing campaign. The company and the marketing agency could create a supplement that describes the new product and how it should be marketed. The supplement would also include any changes in cost. Both parties would need to sign the supplement to show they agree to the changes.