Document background
The Promissory Note Addendum is utilized when parties need to modify the terms of an existing promissory note without creating an entirely new instrument. This document is particularly relevant in situations where circumstances necessitate changes to payment terms, interest rates, security arrangements, or maturity dates. Common scenarios include debt restructuring, financial hardship accommodations, or mutual agreement to modify terms. Under Indian law, the addendum must comply with the Negotiable Instruments Act, 1881, the Indian Contract Act, 1872, and relevant stamp duty requirements. The document typically includes details of the original note, specific modifications, and maintains the validity of unmodified terms. It's essential for both parties to clearly document these changes to ensure legal enforceability and maintain proper records for future reference.
