Contract Extension
When a contract is extended, the terms of the original contract are extended for an additional period of time. The extension may be for a specific period of time, or it may be open-ended. An extension may also be known as a renewal or re-negotiation.
Extending a contract can have benefits for both parties. For the party extending the contract, it can mean continued access to goods or services that they value. For the party being extended, it can mean continued revenue from a valuable customer. In some cases, extending a contract can also help to build goodwill between two parties.
There are some drawbacks to extending a contract as well. For example, it can tie up resources that could be used elsewhere, and it can create uncertainty about the future. In some cases, it may also be difficult to negotiate favorable terms during an extension.
If you’re considering extending a contract, weigh the pros and cons carefully before making a decision.