Contract Extension Template

A contract extension agreement is a legal document where the parties decide to extend the original contract's end date. These are given out when the original parties are pleased with the original contract's terms and conditions, or if they agree that a longer contract is necessary to complete the work. Edit this legal form and save a prepared copy for your needs easily on Lawrina.

A contract extension agreement is a legally binding document that extends the timeframe of an existing contract. The agreement includes the identity of the parties, the obligations of the parties, terms, conditions, and the extension period. Create a contract extension agreement template in just a few simple clicks: edit to reflect your circumstances, download, print, and use.

What Is a Contract Extension Agreement?

A contract extension agreement is a legally binding arrangement between parties of an existing contract seeking to extend its end date. It extends the terms and conditions of an existing contract and can be used to extend lease agreements, employment, service, or sale of goods contracts.

Contract extension means that an existing contract is continued for a certain period. This will be exercised through the extension options in the contract upon mutual agreement of the parties.

Parties of the Contract Extension Agreement

The parties in an extension letter for a contract should be the same ones in the original document, and they include:

• The party extending the contract. In the original arrangement, this is the individual or company that made the offer.
• The party accepting the extension, also known as the offeree or the individual or company who accepted the offer made in the original contract.

Key Terms

To fully utilize a general contract extension agreement template, you’ll need to understand the complex terms used in drafting the document, which include the following:

• Counterparts –– These are the copies of an original contract extension agreement. Due to logistical reasons, parties to a contract may have to sign different copies, such that one of the documents is original and the others are counterparts. In a contract extension addendum, the term is used as part of a clause that states the signed counterparts are all part of the same instrument.
• Entire agreement –– The phrase means that the current contract represents the agreement between the parties and takes precedence over all other agreements and arrangements.
• Force Majeure –– In this contract forms sample, force majeure translates to “superior force” or “act of God,” which refers to an event beyond the parties' control that may prevent one or both parties from fulfilling their contractual obligations.
• Indemnification –– It refers to an undertaking by one party to compensate the counterparty in case of a loss arising from third-party claims. For example, in a consultancy contract, the consultant can indemnify their client against any liability arising from negligence as they perform their contractual obligations.
• Material Adverse Change (MAC) –– Refers to a negative change in a party's financial or business condition. In a contract extension addendum example, the phrase is used in a clause that permits either party to terminate the contract if there is a material adverse change in the other party's circumstances.
• Severability –– The term means a contract is divided into individual parts. It is used to show that should a court of law find that parts of the contract are invalid, such parts will not affect the validity of the rest of the contract.
• Survival clause –– The clause provides that certain rights and obligations will survive the end or termination of a contract. For example, a contract may provide that any intellectual property arising from the engagement survives the contract period.

Please note this list is not exhaustive since terminologies vary depending on the project, industry, and parties.

What To Include in a Contract Extension Agreement?

All that is required for extension is a pdf contract extension agreement template. This is an amendment to the existing contract as long as both parties are willing to extend it.

Rather than writing a whole new contract for extending the existing contract, parties can just specify their desire to extend the existing contract. This should include the following: