By signing an extension agreement, you are giving new life to the commitments in the contract that were set in motion by the initial agreement. The cancellation date is effectively moved forward from the status quo.
There are no changes in the agreement that would have required a new agreement, which would have deviated from the existing terms and conditions. A contract extension agreement extends the life of a contract, usually a win-win situation for both parties.
For example, businesses may form partnerships with each other only for a limited period, such as until a certain date or until the completion of a particular project. There is also the possibility of using a partnership contract extension agreement if the partners decide to extend the duration of the contract.
There are many situations in which a contract extension can be useful. When you want to complete a project or continue working together, extending a contract may be necessary or desirable. You can do an extension of a contract after the contract has expired or as soon as it becomes clear that an extension is necessary.
The parties to a contract that expires after a set period may discover, after signing an agreement, that their working relationship is so successful they want to continue working together after the contract expires. This can be accomplished by extending the contract.
After the agreement is signed, the time frames contained in the contract may, eventually, be found not to be sufficient for the completion of the tasks. Both parties may have anticipated that government permits would be available within 30 days of signing a construction contract. However, as early as a few days into the project, it becomes evident the permit process will take twice as long. An extension of the contract could be offered if there’s such a mistake in expectations.
The following details may be included in an introduction:
It is important to indicate the date you signed the extension agreement.
Make sure to include the full names, company information, and addresses of all the parties who will execute the agreement.
There should be a brief introduction to the purpose, the terms, the duration, the date of signing of the original contract, and the fact that the parties entered into an original contract.
Aside from the extension agreement, the parties agree to extend the terms and conditions of the original agreement in accordance with the terms and conditions of the extension agreement. Detailed clauses are often included in agreements regarding the terms and conditions of extension.
Mention the original contract’s ending date separately. An extension agreement should include this clause.
Outline the validity of the extended contract after the end date of the original contract.
In other words, after the original contract has expired for a specified period of months, weeks, or days, as agreed upon.
Apart from the parties themselves, the agreement binds all parties’ legal representatives. In addition to heirs, executors, and assignees, they may also be beneficiaries. If one of the parties signing it is not available for any reason, this provides an additional guarantee for the contract’s fulfillment.
Both the extension agreement and the attached original agreement comprise the complete agreement between the parties. If both parties draft and sign an extension agreement, there is no need to draft a new agreement.
Both parties must sign the sample contract extension agreement form on the official letterhead of one of the parties.
You can sign the extension with a pen or through an electronic medium recognized by the government, depending on the circumstances.
*Please consider that this is a non-exhaustive list but just a few main things this agreement should have.
Be sure to include your business information and that of your client.
This is where you outline what services and/or supplies you will be providing.
This section includes the location, goods, and services included in the liquidation
This is where you outline how much you will be paid, how your client can pay you, and any additional information (late fees, nonpayment, etc.)
This section includes your timeline for the work specified and a final deadline.
If there are licenses or permits to be included, this is where you specify who is responsible for these.
Include any details regarding safety equipment and who is responsible for costs and maintenance.
This clause should include the outcome of any damages or losses or a denial of responsibility for such instances.
Signatures and dates belong in this section.
Always have a professional lawyer look over your contract prior to having your client sign them and then file them with your lawyer for safe recordkeeping.
There are three ways to extend a contract:
It is not always better to use one method over another. A contract extension will vary depending on a number of factors, including the nature of the contract, the extent of any changes needed, and the relationship between the parties.
Our contract extension agreement example can be used to continue a business relationship without having to rewrite the contract from scratch.
It takes a lot of time to create your own contracts. We offer a free printable template that can be downloaded as a contract extension agreement PDF or in Word.
When you use this contract extension agreement PDF, you assume all responsibility and liability. No legal responsibility is retained by Lawrina for the legal document’s accuracy, reliability, or functionality.
The unprofessional use of this legal form or other templates on this website could result in direct or indirect losses or damages. By downloading, printing, or using this agreement, you accept all liability for any loss or damage you may suffer.
Frequently Asked Questions
When extending an existing contract, knowing how to write a contract extension letter is essential. An extension agreement eliminates the need for a new contract or liability from the unfulfillment of the original contract. Changing the contract’s terms and end date is all that needs to be done.
An expired agreement cannot be revived. By legal requirements, it no longer exists. However, you will need to start a new document to do this. In the event both parties agree, the start of the new term can be backdated so there is no lapse in coverage during that time.
The term “extension” refers typically to extending the duration of a contract. The term “renewal” usually refers to a new contract. Some situations may not require this distinction, but it can have legal repercussions in complex contracts. This distinction is especially helpful in employer/employee situations.