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Extension Agreement for Canada

Extension Agreement Template for Canada

A formal agreement governed by Canadian law that extends the duration of an existing contract between parties. This document maintains the original agreement's core terms while updating the termination date and potentially modifying specific provisions. It ensures compliance with provincial contract laws and federal regulations where applicable. The agreement includes essential elements such as party identification, reference to the original agreement, clear statement of the extension period, and any modified terms. It serves as a legally binding amendment to the original contract, maintaining continuity of business relationships while allowing for necessary updates to terms and conditions.

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What is a Extension Agreement?

The Extension Agreement is a crucial legal document used when parties wish to continue their contractual relationship beyond the original termination date. This document type is particularly relevant in the Canadian legal context, where it must comply with both federal and provincial contract laws. It's commonly used when businesses want to maintain existing contractual relationships without negotiating entirely new agreements. The Extension Agreement typically includes references to the original agreement, specific extension period, any modified terms, and confirmation of continuing obligations. It's essential for business continuity and relationship management, especially in long-term commercial arrangements. The document should be drafted considering specific provincial requirements, as contract law varies across Canadian jurisdictions. It's particularly useful when parties are satisfied with existing terms but need to extend the duration, potentially with minor modifications to accommodate changed circumstances or new business requirements.

What sections should be included in a Extension Agreement?

1. Parties: Identification of all parties to the extension agreement, which should match the original agreement unless there are permitted assignments/transfers

2. Background: Reference to the original agreement, its date, and parties' desire to extend it

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

4. Extension of Term: Clear statement of the new term duration and effective date of the extension

5. Confirmation of Terms: Affirmation that all other terms of the original agreement remain in full force and effect

6. Governing Law: Confirmation of the governing law, which typically matches the original agreement

7. Counterparts and Execution: Provisions for signing the extension agreement, including electronic execution if applicable

What sections are optional to include in a Extension Agreement?

1. Modified Terms: Used when the parties are also modifying certain terms of the original agreement beyond just the extension of time

2. Consideration: Required if there is new consideration for the extension or if consideration needs to be explicitly stated

3. Representations and Warranties: Used when parties need to confirm certain facts or conditions as of the extension date

4. Conditions Precedent: Include if the extension is conditional upon certain events or actions

5. Regulatory Compliance: Required if the extension needs to comply with specific regulatory requirements

6. Fee Adjustments: Include if there are any price or fee changes associated with the extension

7. Notice Details: Include if there are any updates to the notice details from the original agreement

What schedules should be included in a Extension Agreement?

1. Schedule A - Original Agreement: Copy of the original agreement being extended

2. Schedule B - Modified Terms: Detailed list of any terms being modified beyond the extension of time

3. Schedule C - Updated Fee Schedule: If applicable, new or modified fees for the extension period

4. Schedule D - Conditions Precedent: If applicable, detailed list of conditions that must be met for the extension to be effective

Authors

Alex Denne

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

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions




















Clauses























Relevant Industries

Real Estate

Technology

Manufacturing

Professional Services

Construction

Retail

Healthcare

Education

Energy

Transportation

Financial Services

Telecommunications

Agriculture

Mining

Entertainment

Relevant Teams

Legal

Procurement

Finance

Operations

Commercial

Business Development

Compliance

Risk Management

Contract Administration

Sales

Account Management

Executive Leadership

Relevant Roles

Contract Manager

Legal Counsel

Business Development Manager

Chief Financial Officer

Procurement Manager

Project Manager

Account Executive

Operations Director

Commercial Manager

Risk Manager

Compliance Officer

General Manager

Chief Executive Officer

Sales Director

Relationship Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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