The extension of the contract can be carried out in various ways. In some cases, the extension is provided for by law. In general, the choice of the method by which the contract will be extended, the wording of the relevant clauses in the document - all this depends on the level of trust between the parties, on the absence or presence of the need to verify various facts. 
Key points
One of the integral clauses of the contract is the provision on the terms. At the same time, for certain transactions it will be obligatory or essential. For example, this concerns the conclusion of a contract. For other transactions, such a tight framework has not been established. This is the case with the sale. The period during which the contract is valid and the parties are bound by established obligations is of particular importance. It determines the period during which the interaction of the participants in the turnover within the transaction concluded by them. The determination of the term is especially important in cases where the parties are working with each other for the first time. In this way, they can evaluate commitment and integrity. If something does not suit someone, participants can terminate the relationship at the end of the specified period or before it ends, if the possibility of early unilateral refusal is established.
Contract renewal: options
By the end of the period provided for at the conclusion of the transaction, the parties may decide to continue cooperation. In this case, you should either sign a new paper, or extend the previous one. As practice shows, often participants in the turnover forget to take appropriate measures at the end of the specified period. In particular, this happens if there are many such agreements. This omission can lead to very adverse consequences. Among them, in particular, the termination of fulfillment of obligations in connection with the expiration of the agreement. In order to avoid such incidents, the necessary measures should be taken in time. How can a contract be extended? Renewal can be carried out:
- By law.
- Additional extension agreement.
- Default.
- New agreement.
Consider the options in more detail. 
General order
In some cases, it is advisable to conclude an agreement with prolongation (a sample document can be found in the article). If the law does not provide for the extension of the document, the parties, as a rule, themselves provide for this paragraph. This is allowed if the terms for the extension of the contract are not established by law. The norms may prescribe limit periods for certain transactions. For example, the extension of a lease agreement for a piece of forest that is in municipal or state ownership can be carried out for no more than 49 years. Such an order is established in the Forest Code, Art. 72.
Design Nuances
How is the extension of the contract fixed? The wording in the document may be different. For example, the paper may indicate:
This agreement comes into force from the moment of signing and is valid for a year. At the end of this period, if none of the parties declares refusal within thirty days, the document is considered extended for another 1 year. Thus, the automatic extension of the contract is fixed. 
Early Termination
A clause on the absence of the need to sign additional paper, the unlimited number of renewals and so on may be included in the terms of the extension of the contract.Also, in some cases, a provision is added that each (or one) party can refuse to fulfill obligations and exercise rights before the document expires. In this case, the participant who wants to terminate the contract sends a second letter - a notification about this.
Contract extension agreement
In practice, situations arise when the parties do not plan to change anything in the signed document. In these cases, the extension of the contract is carried out by issuing additional paper. However, other points remain the same or some provisions can be adjusted along with the extension without a significant change in the content and structure of the document. Signing an additional agreement is tantamount to the legal significance of a prolongation by default. The difference is that in this case another paper is drawn up and signed by the parties. 
Corporate Approval
In some cases, consistent major deals or those in which there is an interest in the governing bodies of the company. In such situations, the extension of the contract will also require approval. If the document originally contained a default renewal clause, then approval is not necessary. It should be clarified here that if an additional document changes several conditions, except for prolongation, approval will still have to be obtained.
Renewal by law
This extension of the contract saves the time of the parties to the transaction. There are various regulations governing this issue. In particular, it may be the Housing Code, Federal Law, government regulations and so on. For example:
- In the absence of applications from the parties to terminate the contract for apartment building management at the end of the specified period, it is considered extended on the same terms and at the same time. This requirement is contained in the LCD, Art. 162.
- Agreement about trust management is considered extended for the specified period if the unit owners have not requested redemption and if this provision is provided for by the relevant Rules. This provision is established in Federal Law No. 156, which regulates the issue of investment funds.
- The period of validity of the tour operator’s liability insurance contract is recognized as extended for the same time and with the same conditions, unless the parties to the legal relationship declare within three months before the expiration of the specified period to change or terminate the relationship or enter into a new contract. This position is recorded in the Federal Law No. 132.
- An agreement on cold water supply shall be deemed extended for the same period and with the same conditions, if, within a month before its end, the parties do not declare the termination or change of its clauses or the conclusion of a new one on other grounds. This clause is contained in a model contract approved by government regulation No. 645.
Legal Renewal Benefits
Such an automatic extension exempts participants in legal relations not only from the conclusion of an additional agreement or a new contract. In this case, the parties do not need to include the relevant paragraphs in the source document. In addition, due to the automatic extension according to the law, relations between contractors are also stabilized, which can simply forget about the expiration of the contract. If there are necessary provisions in the norms, entrepreneurs may not be distracted by additional actions that distract them from activities.
New contract
In the event that the expiration of the document approaches, the parties can draw up and sign a new agreement. At the same time, participants can leave all items unchanged or adjust something. The previous contract will cease to act, and the ongoing relations of the participants will be regulated by the new contract.In accordance with a general rule, a contract or law may provide that, at the end of a specified period, the obligations and rights of the parties cease. This, for example, applies to a contract of guarantee, rental, maritime agency and so on. The document may specifically indicate the circumstances in which obligations are terminated. For example, at the end contract duration the landlord eliminates the need to provide security for the premises used by the counterparty, provide public utilities, and so on. If such circumstances are not indicated in the document, then it acts by default until the full repayment of obligations.
The need for a new contract
It is advisable to conclude an agreement instead of the previous one in those cases when the parties plan to continue cooperation, but on different conditions. For example, the owner of the premises, transferring it to use, may decide to fundamentally change the content and structure of the standard form of the contract. So, one may be excluded by them and other provisions may be added. For example, adjustments may relate to clauses on liability, additional obligations, ways of fulfilling conditions, charging procedures, and so on.
Alternative option
You can extend the validity of the document by sending a letter on the extension of the contract. This is permitted if the original contract contains a clause. Only then will correspondence have legal significance. The party wishing to extend the contract sends an official letter to the partner, indicating the appropriate period. However, in this case, there is a risk of falsification of the presence of such a notice or the likelihood of contesting the fact of receipt by an unscrupulous counterparty. 
Finally
Attention to the expiration date of the contract will help to avoid problems in business. The point in which a specific period is established provides protection for the participant who, within the framework of legal relations, makes investments for the subsequent receipt of income. If the transaction is of a one-time nature, then in the contract it is impractical, as a rule, to prescribe long periods. If the parties fulfill their obligations, its further action does not make sense. For example, this applies to the situation when the contractor installs the software. However, in this case, the customer can offer long-term cooperation. Then it is necessary to conclude a new agreement, which indicates the period of its validity, paragraphs on renewal are introduced (if necessary). In each specific case, participants should proceed from the nature of the transaction, the goal that is expected to be achieved upon entering into legal relations. If, for some reason, the terms of the extension are not specified in the contract, and its validity period is strictly defined, the document should be reviewed on time and its future fate decided.
