A Contract Extension Letter is a formal written notice confirming the mutual decision to extend the term of an existing contract. Rather than drafting a new agreement from scratch, this letter offers a simple, efficient way for both parties to agree to continue the relationship on the same or slightly amended terms—usually for a specific period of time.

Whether you're continuing a consultancy arrangement, a service contract, or any other business agreement, a contract extension letter helps avoid interruptions, provides legal clarity, and reinforces professionalism.

What is a Contract Extension Letter?

A Contract Extension Letter documents the agreement between two parties to prolong the duration of a previously signed contract. It typically references the original agreement, states the new expiry date, and confirms that all other terms and conditions will remain unchanged unless otherwise agreed.

This type of letter is often used in commercial relationships where the parties are satisfied with the existing arrangement but need to formally acknowledge that it will continue beyond its initial end date.

Why is a contract extension important?

Extending a contract through a formal letter ensures that:

• The continuation is legally binding and clearly recorded
• There is no gap in services, payments, or legal protections
• Parties can maintain the benefits of the original agreement without renegotiation
• All terms—including renewal dates, deliverables, and obligations—are clearly restated or confirmed

It also avoids uncertainty. Relying on informal verbal agreements to extend a contract can lead to misunderstandings, especially if issues arise down the line.

Create your Contract Extension Letter with Bind

With Bind, you can generate a professionally worded Contract Extension Letter in just a few minutes. Simply enter the original contract date, the names of the parties, and the new expiry date. Bind then provides a complete, sound document you can edit, sign, and send—all in one place.

You can also request electronic confirmation of agreement and finalise the extension using digital signatures.

What should a Contract Extension Letter include?

A good contract extension letter contains:

• Original parties
• The name and date of original agreement
• A reference to current expiry date
• The new expiry date
• Confirmation that all other terms remain in effect
• Request for confirmation and signature

These elements ensure that both parties are fully aware of the extension and agree to its terms.

What happens if you don’t formalise the extension?

If a contract expires without a written extension, any ongoing work or services may not be legally protected. This creates ambiguity about payment, liability, or performance expectations. In some cases, a party could argue that the contract no longer applies—potentially leading to disputes, financial losses, or compliance risks.

A Contract Extension Letter protects both sides and provides a clear, mutual understanding of the extended term.

Contract Extension Letter – free template

Dear Sir/Madam,

Subject: Contract Amendment – Extension of Term

We refer to the agreement between [Company Name] and [Company Name] named [Name of Agreement] dated [Date], as amended from time to time (the “Agreement”).

Extended Term
The Agreement is due to expire on [Date]. We propose to extend the term of the Agreement until [Date]. All other terms and conditions of the Agreement shall remain unchanged and in full force and effect.

Please confirm that you agree to the proposed extension terms by digitally signing this letter.

---

Bind is the easiest way to create a correct Contract Extension Letter in minutes. Start your extension letter now with Bind and keep your agreements running smoothly.