An Extension of Agreement is a legal document that prolongs or modifies the terms of an existing contract between two or more parties. It is used when the parties wish to continue their business or professional relationship beyond the original expiration date or when they want to make minor changes to the existing terms without drafting a completely new agreement.
An extension ensures that all rights, responsibilities, and obligations of both parties remain legally binding during the extended period.
The main objective of extending an agreement is to maintain the continuity of business or contractual relationships without interruption. It can be executed for various reasons, such as:
1. Extending the validity or duration of the existing contract.
2. Modifying certain clauses or obligations.
3. Adjusting payment terms or deliverables.
4. Allowing more time for project completion or performance.
5. Updating details such as contact information, addresses, or scope of work.
A valid Extension of Agreement typically includes:
1. Reference to the Original Agreement: Mention the date and title of the initial agreement that is being extended.
2. Duration of Extension: Clearly state the new extended period or revised termination date.
3. Modifications (if any): Specify any changes made to clauses, timelines, or conditions.
4. Confirmation of Unchanged Terms: Declare that all other provisions of the original agreement remain unchanged and continue in full effect.
5. Mutual Consent: The document must be signed by both parties to be valid and enforceable.
6. Effective Date: Mention the date from which the extension will take effect.
7. Governing Law and Jurisdiction: Include a clause specifying the applicable law governing the agreement.
In India, an Extension of Agreement is governed by the Indian Contract Act, 1872.
It is legally binding only when:
1. Both parties mutually agree to the extension terms.
2. The document is duly signed by authorized representatives of both sides.
3. If required, the extension is executed on proper stamp paper as per state laws.
It’s advisable to retain a copy of the signed extension along with the original contract for future reference.
Extending an agreement helps:
1. Prevent legal disputes due to expired contracts.
2. Maintain clarity and accountability between parties.
3. Ensure smooth continuation of ongoing projects or services.
4. Avoid the time and cost of drafting an entirely new agreement.
At xLegal, we simplify the process of drafting and extending legal agreements. Our experts ensure that your Extension of Agreement is:
1. Legally compliant and enforceable.
2. Tailored to your business needs.
3. Professionally drafted to protect your rights and interests.
Whether you’re extending a business contract, service agreement, lease, or employment contract, xLegal helps you complete the documentation quickly and accurately.
Need expert assistance? xLegal Team provides end-to-end support for this, Contact us at +91 9319661668, info@xlegal.in