The Letter of Intent to Extend Contract is commonly used in Malaysian business practice when parties wish to continue their contractual relationship beyond the original term. This document type serves as a bridge between the existing contract and its formal extension, providing clarity and certainty during the transition period. It becomes particularly relevant when complex commercial relationships require continued operation while detailed extension terms are being negotiated. The document typically includes references to the original contract, proposed duration of extension, any modified terms, and timeline for finalizing the formal extension agreement. Under Malaysian law, while such letters are generally non-binding, they carry significant commercial weight and can create certain obligations, particularly regarding good faith negotiations.
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1. Letter Header: Company letterhead, date, reference number, and recipient's complete address details
2. Subject Line: Clear indication that this is a Letter of Intent to Extend Contract with reference to the original contract
3. Opening Paragraph: Reference to the existing contract including its date, parties, and subject matter
4. Expression of Intent: Clear statement of intention to extend the contract and brief reasoning
5. Key Terms of Extension: Proposed duration of extension and any modified terms
6. Timeline: Proposed timeline for finalizing the formal extension agreement
7. Closing Statement: Statement regarding the non-binding nature of the letter (unless intended to be binding) and next steps
8. Signature Block: Space for authorized signatory's name, title, and signature
1. Conditional Terms: Include when the extension is subject to specific conditions that must be met
2. Price Adjustments: Include when the extension involves changes to pricing or payment terms
3. Performance Review: Include when referencing performance under the existing contract as basis for extension
4. Regulatory Compliance: Include when extension needs to address specific regulatory requirements or changes
5. Confidentiality Statement: Include when the letter contains sensitive commercial information
1. Schedule A - Original Contract Reference: Copy or summary of key terms from the original contract being extended
2. Schedule B - Proposed Changes: Detailed list of any terms, conditions, or prices that will change in the extension
3. Schedule C - Extension Timeline: Detailed timeline for negotiation, documentation, and implementation of the extension
4. Appendix 1 - Supporting Documents: Any relevant certificates, licenses, or other documents supporting the extension
Relevant legal definitions
Clauses
Extension Terms
Duration
Consideration
Conditions Precedent
Binding Effect
Good Faith
Confidentiality
Governing Law
Notices
Non-Assignment
Counterparts
Severability
Entire Understanding
Authority
Time Period
Existing Obligations
Price Adjustment
Performance Standards
Regulatory Compliance
Dispute Resolution
Duration
Consideration
Conditions Precedent
Binding Effect
Good Faith
Confidentiality
Governing Law
Notices
Non-Assignment
Counterparts
Severability
Entire Understanding
Authority
Time Period
Existing Obligations
Price Adjustment
Performance Standards
Regulatory Compliance
Dispute Resolution
Relevant Industries
Manufacturing
Technology and Software
Construction
Professional Services
Healthcare
Education
Retail and Distribution
Energy and Utilities
Telecommunications
Financial Services
Real Estate
Logistics and Transportation
Oil and Gas
Agriculture
Relevant Teams
Legal
Procurement
Commercial
Operations
Business Development
Finance
Compliance
Risk Management
Supply Chain
Contract Administration
Relevant Roles
Chief Executive Officer
Managing Director
Commercial Director
Contract Manager
Procurement Manager
Legal Counsel
Business Development Manager
Operations Director
Project Manager
Account Manager
Supply Chain Manager
Relationship Manager
Compliance Officer
Risk Manager
Finance Director
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