Contractual Addendum

Introduction:

The Office of General Counsel has developed a legal document for principals to use whenever entering into a legally binding contract to purchase goods and services. The document is referred to as an “Addendum.” As the name implies, an Addendum is a supplementary legal document that gets added to an existing contract. The Addendum adds additional legally binding requirements that both parties agree to adhere to. 

·        The student activity Addendum contains “boilerplate” terms and conditions that ensure the contract being entered into complies with District practices. The addendum puts in writing sound business practices that need to be in place whenever an agent of the District enters into a contract. It protects both the District as well as the principal signing the contract.

·        Examples of when an Addendum would be added to a contract could include contracts for: proms, yearbooks, DJ services, class trips, and class luncheons. The Addendum should be added anytime a principal enters into a contract arising from a student activity. 

·        The wording and conditions in the Addendum were judiciously written by the Office of General Counsel after careful thought and deliberation. The District highly recommends that the exact wording in the Addendum be used at all times. From time to time however, a vendor may wish to explore the possibility of modifying one or more of the terms and conditions in the Addendum. If this situation arises, the principal should contact the Office of General Counsel to obtain legal advice.

Overview:

1. The addendum needs to be executed by both the principal and the vendor in order for it to be legally enforceable.

·        It is not required for an attorney from the Office of General Counsel to also execute the Addendum in order for it to become effective.

1. As part of their ongoing responsibilities to ensure that the District is complying with sound business practices, Audit Services may request to see a copy of the Addendum in the course of performing an audit of a student activity.

·        Failure to have an executed Addendum could lead to an Audit Deficiency Finding.

1. As stated in the introduction, it is incumbent upon principals to add the Addendum anytime they, as representative of the Philadelphia School District, enter into a legally binding contract for a significant purchase of goods and services.
2. Principals should carefully read the Addendum. If they have any questions or concerns regarding its content they should contact the Office of Legal Counsel.