What Is An Extension Agreement?
An extension agreement is a document that allows parties to extend the duration of their agreement. Making an extension agreement can help you avoid rewriting the whole contract again, you can alter simply the end date of the original one. Once the extension agreement is in position, you can always continue going progressive.
How To Write An Extension Agreement?
Knowledge about writing an extension agreement is necessary, especially if your contract is expiring and you want to extend its duration. Writing an extension agreement can save much of your time and removes the need for writing the whole contract again. Altering the terms and end date of the agreement is all you need.
The guidelines below can help you create an effective extension agreement with ease. Ensure to follow them and prepare to continue your success.
1.) Define the Purpose And Duration
If there were no dilemmas with your partner, and you want to continue your legal agreement, the initial step is to identify the purpose of your agreement and its duration. Consider to ask yourself, what are the reasons for the continuing and benefits of the contract? How long the contract should work? What should be included in the contract? This step can help you explore more about the pros and cons of extending the effect of the contract.
To help you explore for more details, consider asking your sales team or searching for answers online or from books.
2.) Established A Draft
After knowing the details that should be included in your sample agreement, think about creating a draft of the document that you should deliver to your recipient. It's okay if your output isn't so organized or concise because you can modify and revise everything later on. Just consider that it's still your draft and not your final output.
3.) Recognize And Restate Commitments
Revisit your original agreement and identify the obligations and commitments of each party should take. Obligations are the duties that individuals included in the agreement should do until the agreement is still active. It's necessary to restate that again to your basic agreement so you and your partner will be guided about your boundaries, limitations, and responsibilities.
4.) Termination And Resolving Disputes
It is also an excellent choice to include the factors that could end the impact of the agreement in the operation. With this, no one in the agreement will be violated, and it can maintain the terms and sense of the agreement. Also, include procedures or intervention requirements on how to resolve disputes to avoid lawsuits.
5.) Revise, Proofread, Deliver
Start establishing the actual agreement letter that you'll be sending to your recipient or partner later on. Revise your draft, remove unnecessary terms, and make your agreement concise. After revising the original output, read it and search for errors. Once satisfied and confident, send it to your recipient and wait for feedback. If the recipient approves the agreement, both parties should sign the agreement, and obtain copies of the agreement.