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What Is the Difference between Contract Renewal and Extension

One of the main differences is that if you renew your lease instead of renewing it, there is what is called a “legal time in time”. This is the period between the expiration date of your initial lease and the start of your next rental period. So when you sign a contract for the lease extension, you create a brand new lease. Another difference is that an extension requires the execution of a new written lease. On the other hand, an extension requires nothing more than an action by the tenant in accordance with the terms of the existing lease to indicate a choice to renew the lease. However, Ohio courts have held that there is no difference between the words “renewal” and “extension” if their meaning is not defined or explained. In other words, whatever term is used, the term of the original lease can be extended without the need to execute a new lease, unless there is explicit wording to the contrary in the lease. Yes, if agreed by the parties (as a modification of the contract). In certain circumstances, it may be in the government`s interest to renew a contract for a period other than the options. Look at the following examples of cases where this might be appropriate. Depending on the terms set by your landlord, your lease includes either an extension lease clause or an extension clause, each with significant differences: however, under a lease renewal contract, there is no parameter between the old lease and the start of a new one. In fact, there is no “new” lease at all – the lease continues to operate as if it had not expired. For example, if the lease contains rental concessions for landlords (p.B.

the first month`s rent is free or if the landlord must contribute financially to the tenant`s expansion), an extension of the lease may be interpreted as requiring the landlord to re-grant all of these concessions. If the lease grants some of the rights that have expired (for example.B. the tenant has the right to terminate without giving reasons during the first six months of the lease), these rights will probably also be renewed. When it`s time to process a contract extension with a supplier or customer, it`s recommended to do some research first. Start by going through your initial contract and looking for something that is outdated or needs to be changed. For example, you may want to increase prices. Once you have completed your research, you can send an official letter offering an extension contract. Many leases offer the tenant the option to extend or extend the term of the lease beyond the expiration of the original term. This short article examines whether it makes a difference whether this option is presented as a renewal option or as a lease renewal option.

While renewals and extensions have similar practical implications, there are nuanced differences. In many cases, the terms of the contract that is renewed remain the same. Many contracts include an automatic renewal clause that provides that the existing contract is automatically renewed for a period specified in the contract, unless one party notifies the other party of its intention to terminate the contract when it is intended to terminate it. The contract shall set out the method and timetable required for notification. All employees are responsible for ensuring that they maintain complete and accurate records of activities related to contract renewals and renewals in accordance with relevant policies, standards and guidelines. These include the Public Records Act 2002 (435 KB) and the relevant principles contained in Queensland Government Information Standard 40: Recordkeeping and 31: Retention and Disposal of Public Records. Before deciding to renew your contract, you should check to see if there are any planned procurement activities that could impact the contract renewal or for how long. This article summarizes the legal difference between extending or extending a lease term. While a lease extension and a lease extension can have the same practical effect, when drafting an extension clause or an extension clause in a lease, it is important to know that the courts have concluded that there is a distinct and clear legal difference between the two. You can use the Contract Renewals/Renewals checklist if you can adequately explain the reasons for the renewal/renewal.

When you decide to sign a lease extension or lease extension, the decision requires an important question about your personal rights as a tenant: will they continue to exist? Once the verification is complete, make sure that the new changes have been saved and set the new renewal date. .