The Extension Agreement is a crucial document used when parties wish to continue their contractual relationship beyond the original term. This document type is commonly used in Indian business contexts where existing contracts need to be extended without creating entirely new agreements. The Extension Agreement typically includes details about the original contract, the extended duration, any modified terms, and confirmation of continuing obligations. It must comply with Indian contract law requirements, particularly the Indian Contract Act, 1872, and may need to address specific sector-related regulations. This document is essential for maintaining business continuity while ensuring legal compliance and can be used across various industries from real estate to IT services. The agreement should clearly reference the original contract and specify whether any terms are being modified alongside the extension.
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1. Parties: Identification of all parties to the extension agreement, which should match the original agreement unless there are permitted assignments/transfers
2. Background: Recitals detailing the original agreement, its date, purpose, and the reason for extension
3. Definitions: Key terms used in the extension agreement, including references to definitions in the original agreement
4. Extension Term: Clear specification of the new duration or extended period
5. Continuing Effect: Confirmation that all other terms and conditions of the original agreement remain in full force and effect
6. Consideration: Details of any consideration paid for the extension, if applicable
7. Integration Clause: Statement that this extension agreement forms part of the original agreement
8. Governing Law: Confirmation of the governing law, typically Indian law
9. Execution: Signature blocks and execution details
1. Modified Terms: Include when any terms besides duration are being modified as part of the extension
2. Additional Obligations: Include when new obligations are being added along with the extension
3. Financial Adjustments: Include when there are price changes or financial terms being modified
4. Regulatory Compliance: Include when extension requires specific regulatory approvals or compliance
5. Performance Review: Include when extension is conditional upon review of past performance
6. Notice Requirements: Include when specific notice requirements for future extensions or terminations are being added
7. Assignment Rights: Include when transfer/assignment rights are being modified along with extension
1. Schedule 1 - Original Agreement: Copy or reference to the original agreement being extended
2. Schedule 2 - Extended Terms: Detailed description of the specific terms being extended or modified
3. Schedule 3 - Payment Schedule: Updated payment terms or schedules if financial terms are modified
4. Schedule 4 - Performance Metrics: Updated or continuing performance criteria if applicable
5. Schedule 5 - Compliance Certificates: Copies of any required regulatory or compliance certificates for the extension
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