Extension of Agreement

A Contract Extension Agreement is used to continue an existing contract that’s about to end. Basically, only changes in the termination date are to be made. This agreement can be used to make the required changes in the existing contract. 

Once the contract extension is approved by the contracting parties, an extension agreement can be put in place. A contract extension agreement is used:

• If the parties want to change the terms of a contract and set a new date of termination.
• When a contract is ending and the contracting parties want to extend the date..
• When an employer and employee wish to extend the employment agreement date.

There are several situations in which a contract extension can be useful. Extending a contract can be necessary in order to complete a project, or desirable in order to continue a productive working arrangement. In terms of timing, a contract extension can be done after the term of the contract has expired, or as soon as it becomes clear that an extension is desired or needed.

Parties who signed an agreement that expires after a certain period of time may find that their working relationship is going so well that they want to continue working together beyond the term of the original contract. A contract extension can accomplish this.

At some point after a contract is signed, it may become apparent that the time frames in the agreement are insufficient to complete the tasks. For example, with a building construction contract, it may originally have been expected by both parties that government permits could be obtained within 30 days, but a few days into the contract it becomes obvious that the permit process will take twice that amount of time. A contract extension can adjust for such a mutual mistake in expectations.