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Contract Extension
A contract extension is an agreement between the parties to an existing contract to extend the terms of that agreement for an additional period of time. The duration of the extension is specified in the extension agreement.
In some cases, the extension does no more than extend the termination date of the contract. In other words, all other conditions of the contract remain exactly the same. For example, a contract extension agreement may provide: “The contract between the parties dated January 1, 2018 and ending on December 31, 2018, shall be extended through and including December 31, 2019.” On the other hand, an extension can also change other terms of the contract, in addition to the termination date. Many contracts provide in detail the formalities that must be followed to extend the contract.
Contract extensions are not unusual. One high profile situation often reported by the media concerns coaches and athletes who often agree to contract extensions. Of course, they usually include nice salary increases. Another common scenario is in real estate agreements. Sometimes, parties who have been unable to close a deal by the time originally agreed to in their contract will agree to an extension which provides additional time to consummate the deal.
Frequently Asked Questions
What’s the difference between an extension and a renewal?
An extension keeps the original contract alive for a longer period, so the same document and terms continue running past the old end date. A renewal creates a new term, often under a fresh or restated agreement, and it can reset pricing, scope, or duration. Extensions are usually shorter, simpler, and used when parties need more time.
Can you extend a contract after it expires?
Once a contract’s expired, there’s nothing left to extend in a strict sense, though parties often sign a document that revives the agreement and treats it as continuous. That kind of retroactive fix works best when both sides kept performing and clearly intended to continue. Cleaner practice is signing the extension before the end date arrives.
Does a contract extension need to be in writing?
Almost always yes. If the underlying contract required amendments in writing, an oral extension usually won’t hold up, and agreements that fall under statute of frauds rules need a signed writing regardless. Even where an oral extension might be enforceable, proving its terms is difficult. A short signed extension naming the original contract and the new end date is enough.
