If there has been an agreement made between two parties and one of the parties cannot complete the task that was set forth in the agreement, an extension agreement made be necessary. An extension agreement will set forth the preexisting dates that the original agreement was to have taken place, and then will create new dates of when the agreement is to now take place.



The extension agreement is sure to name all parties involved in the agreement. Both parties will also sign the extension agreement stating that they will abide by what is set forth in the documentation. Many times there will also be a third party witness that is impartial just in case there are any questions asked at a later date or in case the extension agreement is breeched in any way. The extension agreement is commonly only one page long, and states that all other terms and conditions that were originally set forth in the original agreement are still in place. The only thing that changes are the dates by which the agreement will take place.



Extension agreements are often used for loans. The creditor will sometimes offer an extension agreement if the loaner is unable to pay the loan by the original date set forward. A lender will sometimes offer the extension agreement if they truly believe that the loaner will be able to repay the money within a certain amount of time. If any other changes are made to the existing agreement, they will also be stated in the extension agreement.

An extension agreement may also be issued for construction work or any other contract work. As everyone is well aware, when construction work is started, it is not always completed by the original date intended. This is true with work that is contracted out as well. If the company is aware that the work will not be completed on time, they may file an extension agreement.

If a current lease for housing or a vehicle needs to be extended for a longer time, an extension agreement may also be issued. A person may lease a car from a dealership and find that they wish to keep the same car after the original agreement as expired. An extension agreement may be executed for this reason. The same situation may occur if a person is renting or leasing a house or apartment. Once their original lease is over, they may extend the lease if the person wants to continue residing in the same residence.