Extension Agreement for Australia

Extension Agreement Template for Australia

A formal legal document governed by Australian law that extends the duration of an existing agreement between parties. This document maintains the core terms and conditions of the original agreement while specifying the new expiration date and any modified terms. It ensures compliance with Australian contract law principles, including consideration requirements and execution formalities. The document can incorporate variations to the original terms, updated payment schedules, and performance criteria for the extended period, all while maintaining the enforceability and integrity of the original agreement under Australian jurisdiction.

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What is a Extension Agreement?

The Extension Agreement is a critical document used in Australian business and legal practice to formally extend the duration of an existing contractual arrangement. It is particularly valuable when parties wish to continue their business relationship under largely the same terms but need to update the agreement's timeframe or make minor modifications. This document type must comply with Australian contract law requirements, including proper execution methods, consideration, and any state-specific regulations. The Extension Agreement typically includes references to the original agreement, specific extension terms, any variations to existing conditions, and appropriate execution blocks. It's commonly used across various industries when contracts approach their expiry date but the business relationship remains valuable to all parties.

What sections should be included in a Extension Agreement?

1. Parties: Identifies all parties to the extension agreement, which must match or legally succeed the parties to the original agreement

2. Background: Recitals that reference the original agreement, its date, and the parties' intention to extend it

3. Definitions: Key terms used in the extension agreement, including reference to definitions in the original agreement

4. Extension: Clear statement of the new expiry date or extended term

5. Original Agreement: Confirmation that all other terms and conditions of the original agreement remain in full force and effect

6. Consideration: Statement of consideration for the extension, if any

7. Execution: Formal execution block for all parties

What sections are optional to include in a Extension Agreement?

1. Variation to Original Terms: Include if any terms of the original agreement are being modified along with the extension

2. Additional Conditions: Include if new conditions apply specifically to the extension period

3. Payment Terms: Include if there are any changes to payment terms or extension fees

4. Performance Review: Include if the extension is conditional upon past performance or requires future performance metrics

5. Further Extension Options: Include if providing for additional future extension options

6. Regulatory Compliance: Include if extension needs to address specific regulatory requirements or changes since original agreement

7. Notices: Include if contact details or notice requirements have changed

What schedules should be included in a Extension Agreement?

1. Schedule 1 - Original Agreement: Copy or reference to the original agreement being extended

2. Schedule 2 - Varied Terms: Detailed list of any terms being varied as part of the extension

3. Schedule 3 - Extension Fees: Breakdown of any fees payable for the extension

4. Appendix A - Performance Criteria: If applicable, metrics or KPIs that must be met during extended term

5. Appendix B - Updated Contact Details: If applicable, updated authorized representatives and contact information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use

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