| An extension agreement allots additional time to | | | | This type of extension agreement generally |
| an existing legal contract. This agreement is | | | | specifies the date when it goes into effect and |
| reached between two or more parties regarding | | | | the term for which it will apply. The agreement is |
| the extension of the existing contract. There are | | | | between a landlord and a tenant regarding the |
| various forms that may also be used to extend | | | | initial lease. The two parties will then refer back to |
| the performance time under an existing legal | | | | the prior lease and specify the period of time |
| contract. | | | | which it originally covered and then state the |
| Extension agreements can be used to allow extra | | | | specific extension of the prior lease term. The |
| time to make a payment, continue a lease, or file | | | | dates on which the extension agreement |
| a legal document. The agreement is an | | | | commences and expires are stated, and any |
| understanding between both parties regarding the | | | | revised rent payment terms or amounts are also |
| existing contract terms. | | | | listed. There may be a section dealing with |
| In banking, a lender may choose to move back | | | | prorated rent if the rent terms are changing in |
| the due date on a loan through an extension | | | | the middle of a specified payment period. |
| agreements. Lenders are often willing to do this | | | | Generally, any prorated rent is due at the |
| because they have reason to believe that the | | | | execution of the lease extension. The previous |
| borrower is unable to meet the current deadline | | | | terms dealing with issues such as rent payment, |
| but will have an improvement in their financial | | | | non-payment, and late payments generally remain |
| situation. Extending the loan will therefore benefit | | | | in effect unless otherwise stated. |
| them more than calling it due when the borrower | | | | Unless there is a reason to make substantial |
| is unable to complete payment. | | | | changes to an existing contract or other legal |
| A general extension agreement can take the | | | | document, it is usually much simpler to create an |
| form of a simple addendum to an existing legal | | | | extension agreement addendum. This provides |
| document in which the two parties state that as | | | | the flexibility to extend the time period of an |
| of a certain date they both agree to extend the | | | | existing legal agreement without having to go |
| terms of the earlier agreement for a specified | | | | through the entire contract process again. This |
| additional period of time after the current | | | | can often save time, money, and effort for all |
| expiration date. The extension will usually state | | | | involved parties. It is possible to write and |
| that all other terms and conditions will continue as | | | | execute a binding extension agreement without |
| stated in the original agreement. A new expiration | | | | consulting a lawyer, but it is generally a good idea |
| date for the agreement is then set. An extension | | | | to always make certain that you understand the |
| agreement is binding and can be extended to | | | | terms of any contract you sign. If you with to |
| successors and other representatives. | | | | create an extension agreement, it is possible to |
| A lease is often given an extension agreement. | | | | buy a simple downloadable form on the Internet. |