How to renew (extend) a service agreement, sample

When for some reason the obligation cannot be fulfilled on time, the parties may enter into an agreement to extend the term of the contract. The reasons can be any, both objective and subjective. After all, sometimes it is more economically profitable and expedient to change the term of an obligation and wait for its fulfillment than to demand termination by filing a claim or in court. Moreover, if we are talking about entrepreneurial activity, termination of the contract in court is mandatory after passing the stage of pre-trial dispute resolution, which requires time and financial costs.

Such a document can also be used in long-term legal relations between the parties. Why enter into a new deal if you can lock in its extension for a new term?

This article will focus exclusively on civil contracts. The extension procedure in labor relations is covered separately on the website.

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Agreement to extend the term of the contract

Extension in procurement of construction works

In procurements for construction, reconstruction, major repairs, demolition of a capital construction project, or work to preserve cultural heritage sites, the contract term is changed if, due to the fault of the contractor, it was not completed within the stipulated period or circumstances beyond the control of the parties arose.

In this case, the time for execution of the contract is extended once for a period that does not exceed the initial period for fulfilling obligations. If the work is not completed on time due to the fault of the contractor, the date can be changed if the contractor:

  1. Fulfilled the customer's demands for payment of penalties (fines, penalties) (if they were presented).
  2. Provided security for the execution of the contract for a new term.

How to extend an agreement under 223-FZ

The extension of the contract is not prohibited by Law No. 223-FZ. Customers working under this law independently establish the terms of purchase in their position.

Extension of the contract term under 223-FZ is possible if:

  • the likelihood of an extension is provided for in the contract;
  • extending the period does not change other essential conditions except volume and price (Letter of the Ministry of Economic Development No. D28i-1993 dated March 24, 2017).

In this case, it is not necessary to make another purchase. The extension is completed correctly if the customer placed all changes in the Unified Information System on time (Resolution No. 1132 of October 31, 2014).

Expert opinion

Semenov Alexander Vladimirovich

Legal consultant with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.

To change the validity period of the contract with an additional agreement and not receive claims from government agencies, fill out this document correctly. We have prepared samples for drawing up additional agreements for you.

Content

Extension of a contract implies the extension of a contract that was concluded in accordance with current legislation.

Currently, the procedure for changing the duration of a contract is quite popular and is very often used by the parties between whom the contract was concluded. It does not contain a definition of such a term as prolongation of the Civil Code of the Russian Federation.

But still, it indicates the dates when the beginning and end of the fulfillment of contractual obligations occurs and all required deliveries of goods are completed and work is carried out.

In order to extend the validity of the contract, there are two ways to do this:

  • The first will be the conclusion of an additional agreement between the parties to the contract;
  • Indication in the contract itself of the extension action

In any case, you will need to indicate the period for which the contract is planned to be extended in the future.

When will it be invalid

At the legislative level, the following cases of declaring an agreement void are established:

  1. Art. 168 of the Civil Code of the Russian Federation provides the basis for declaring an extension agreement invalid - if we are talking about the lease of state or municipal property.
  2. An agreement may be declared illegal if the main contract is recognized as such. This is due to the fact that the document is closely interconnected with itself.
  3. Indication of false information in the agreement, or absence of details in the document or information about the parties. Without signatures and a seal, renewal is also impossible.
  4. If the law provides for a ban on extending the contract.

It is important to pay attention to the preparation of an additional document, because it has important legal significance and extends the validity of the assigned duties and rights of the parties. If you are not satisfied with something and would like to change one of the points, discuss it with the other party and include it in the agreement.

3. Contract extension agreement

If the case concerns entrepreneurial activity, then the procedure for terminating the contract in court is mandatory as soon as the stage of resolving the dispute occurs. And this leads to time and money costs.

This type of document may also be applicable if there are long-term legal relations between the parties to the contract.

The procedure for drawing up an agreement to extend the duration of the obligation is quite simple. The parties between whom the main contract was concluded can note the extension of this agreement, set a new term, or make amendments to a certain clause of the contract, making changes only to its wording.

Additional agreement on contract extension download

Types of contracts

In the field of civil and labor law, agreements are conventionally divided by duration. There are two types: fixed-term and unlimited. The first document is drawn up for a certain period of time. This nuance is prescribed immediately to minimize possible problems in the future.


Sample of an additional agreement to an employment contract on the extension of the term of work in connection with election by competition

Video instructions for prolonging a contract, what is the most reliable way to write about it?

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Last modified: January 2021

By transferring property for use to another person, the owner agrees on a certain period during which the property will remain with the tenant. Like any other legally significant document, the lease agreement is drawn up in accordance with current legislation.

If the lease relationship is limited to the period specified in the agreement, by the end of its validity it is necessary to extend the lease agreement or terminate it.

One of the most important issues requiring clarification is determining how to renew the lease and whether state registration of the lease agreement is required.

Basic provisions on the extension of the lease agreement

The wording “lease extension” means the extension of the lease relationship after the expiration of the contract period. The law allows the transfer of lease for any period at the discretion of the parties, however, depending on the duration of the agreement, there are some nuances.

If the contract expires 11 months after its conclusion, it is considered short-term. Leases for a period of more than a year require registration of the tenant's rights in the unified Rosreestr database.

The establishment of a term under a contract is regulated by general civil law. The basic rules for renewing a lease can be found in Art. 621 Civil Code of the Russian Federation.

According to Part 1 of Art. 621, extension of an existing relationship for a tenant is possible under the following conditions :

    Conscientious fulfillment of the provisions of the current contract gives priority to the right to renewal when choosing a new tenant. To renew, you must follow the procedure for notifying the lessor in advance, before the document expires. The period allotted for notifying the owner is indicated in the clauses of the primary contract, and in its absence, the principle of reasonableness is adhered to.

In accordance with Part 2 of the same article of civil legislation, the extension of a rental or rental agreement is possible if:

    the tenant continues to fulfill the terms of the contract using the transferred residential premises (apartment, other property) even after expiration; the owner does not prohibit continued use, subject to continued compliance with the conditions specified in the expired contract, while the validity period of such relations is recognized as indefinite.

Extension methods

Faced with the need to continue the lease, the parties to the lease relationship agree whether a renewal needs to be registered and consider various options for registration. The simplest option is to renew the contract in accordance with the provisions of the law, subject to the parameters specified in Part 2 of Art.

621 of the Civil Code of the Russian Federation (i.e. the tenant continues to use the property, and its owner does not prohibit it from doing so).

In such a situation, the law allows you not to renew agreements and not to draw up additional documents. At the same time, by virtue of clause 1 of Art. 610, adhere to the principle of recognizing the term of a contract as indefinite if it was not initially established in the first contract. Automatic extension of the lease agreement:

In fact, the parties can do the following::

  1. Conclude a new contract.
  2. Draw up an additional agreement to a previously signed document, into which, if desired, new conditions can be legally introduced and basic parameters changed. A sample additional agreement can be downloaded below and filled out yourself, based on the agreement in force between the parties.

The prolongation procedure is significantly simplified if the primary document contains a prolongation clause - a definition that allows, after the termination of the contract, in the absence of mutual disagreement, to renew it for a new period of the same duration. If there is no such clause in the contract, the new validity period is regarded as indefinite.

Is registration required with Rosreestr?

Expert opinion

Semenov Alexander Vladimirovich

Legal consultant with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.

The law is clear that the tenancy must be registered if the property is transferred for 12 months or more. For an agreement concluded for less than 1 year, entry into the Rosreestr database of a rental relationship record is not required.

This norm is established by Art. 651 (clause 2) of civil legislation.

In the absence of registration, the contract is considered void, and the lease relationship has no legal force.

After the lease under the agreement ends, the property is returned to the owner’s disposal in accordance with the procedure defined in clause 1 of Art. 655.

Agreement on termination of the tenancy agreement. Sample (26.0 KiB, 762 hits)

Procedure for notification of renewal

When deciding to renew a contract for a new term, it is in the tenant’s interests to follow the written notification procedure. An official letter is sent to the owner.

When implementing this measure, it is necessary to first study the clauses of the current contract: its individual clauses establish the sequence of actions and indicate the form of notification.

If the notification procedure is not defined, the general principles for drawing up significant documents are used.

A letter written in free form must contain:

    Document's name; date; Link to the primary contract; An indication of the clause of the contract prescribing such a notification procedure; Formulating your intentions to prolong the relationship.

The letter must be signed personally by the tenant (if non-residential premises are rented by a legal entity, the application is signed by an authorized employee and the organization’s seal is affixed).

If the previous contract does not specify a preferred method of communication, choose any of the following:

  1. Email with digital signature.
  2. Registered mail with notification.
  3. Personal delivery with receipt.

Features of interpretation

When planning to take advantage of automatic renewal, you should take into account the legal nuances:

    the presence in the text of the agreement of a clause on prolongation for a new term contradicts the essence of the rental relationship and is considered illegal if a fixed-term agreement was concluded (see Article 606 of the civil law); indication in the primary lease agreement of a pre-agreed condition for automatic renewal, in accordance with Art. 209, limits the right to dispose of property on the part of the tenant; if the property remains at the disposal of the tenant after the expiration of the contract, and the owner himself has nothing against this state of affairs, it is allowed to renew the terms of the agreement for an indefinite period of validity, while maintaining the terms of the lease unchanged.

For the landlord, a signal to extend the relationship will be further deducted rental payments, the absence of delays and compliance with the rules for the use of real estate established in the contract.

Need some advice? directly on the site. All consultations are free / The quality and completeness of the lawyer’s response depends on how completely and clearly you describe your problem:

Many legal documents, including contracts, can be supplemented or changed. The reason for this will be the desire of one of the parties. After a compromise is found, an additional agreement is signed to extend the term of the contract.

A document is the most popular way to prolong legal relations . Let us consider the main provisions of the presented document.

How to apply for an extension

The extension must be included in the text as a separate condition. Then counterparties will be able to continue working, and contract dates will be automatically moved forward. If the relationship is planned as long-term, it is advisable to include a clause on multiple extensions in the text.

When such a possibility is not indicated, a separate additional agreement is drawn up. It is important that the fundamental terms of the contract remain unchanged. Often the text includes a clause on automatic extension.

Before renewing, it is necessary to provide for all the nuances. For example, when deciding whether a GPC agreement can be extended with an additional agreement, clarify its subject matter. If this is a paid service, prolongation will classify it as labor and then problems with the inspection cannot be avoided.

Legal basis

According to all legal norms, contracts are divided into two types according to their duration:

  • is issued on a specific date, the fact must be written down in the document.
  • is issued for a certain period after signing, for example, one year.

Oddly enough, the validity period is not a mandatory condition when drawing up a contract, except in some cases.

ATTENTION! If a clause with a term is not specified, this also applies to the additional agreement, then by default it is considered that it will terminate upon completion of the obligations of the parties.

Ultimately, citizens or companies have two options for the development of events:

  1. make additional an agreement to extend a contract is a convenient measure when the terms of the document remain unchanged.
  2. draw up a new agreement - used when the conditions change radically, or any clauses do not suit one of the parties.

Causes

It’s worth saying right away that an extension is only possible if the document initially implies a long-term relationship. Let us note a number of situations that involve prolongation of the document:

  • Property rental. One of the most common situations in practice. An additional agreement is drawn up between the tenant and the landlord.
  • Credit. In a situation where a citizen has not calculated his solvency, the question of obligations to the bank arises. When a financial institution agrees to a meeting, it extends the loan term by concluding an additional agreement.
  • Supply. Extension of the contract is possible if the buyer independently forms applications and determines the range of goods. An important condition will be the preparation of the document or its extension for a long period.
  • Contract. In this case, one of the parties undertakes to perform a certain amount of work. The deadline is clearly stated. A penalty is paid for each day of delay. It is at this moment that additional information is drawn up. contract extension agreement.

It is impossible to extend the agreement of exchange or gift. Additional agreements apply not only in the field of financial relations, but also in a number of others. For example, a fixed-term employment contract. Its validity period is up to 5 years. It may end at a certain point - the end of the season, leaving maternity leave, etc.

Prerequisites

If at the time of concluding the first agreement it contained specific conditions, then in the case under consideration they must be observed. An extension always involves changing one of the initial provisions.

When concluding a fixed-term or ad hoc contract, it is important to consider the following nuances:

  • if the transaction must be registered in a state manner, then the legality of the additional document is recorded in the same authority as the primary copy;
  • if the first agreement was notarized, then the additional agreement must follow the same algorithm of actions;
  • the cost of certification is fully regulated by Article No. 22.1 of the Law of the Russian Federation on Notaries - when alienating real estate objects, their actual value is always calculated (in other situations a fixed price is determined).


Sample agreement to extend the terms of a lease agreement

Sample

There are no clear rules for prolonging financial or other relationships. The parties can use their own sample or seek help from online sources. Many years of practice in drafting contracts have made some adjustments.

In order to correctly draw up and clearly express the meaning of the additional agreement, the following is required in 2021:

  1. The name must contain the number, title, and place of signing of the main agreement.
  2. Indicate the date and place of signing of the additional agreement. If there are several of them, then the number is also indicated.
  3. Next, the name of the organizations, the position of authorized persons, and their full names . If necessary, a reference is made to the certificate or charter, which confirms the right of the parties to draw up an extension agreement.
  4. The text of the document indicates the new period for which the contract is extended. It is mandatory to indicate that the remaining points remain unchanged. The letter is drawn up in 2 copies. You can additionally indicate this fact.
  5. The additional agreement and extension are signed by authorized persons. Decryption of signatures is required. For legal entities and individual entrepreneurs, it is desirable to have an organization seal.

The document must be drawn up in writing. Electronic storage is permitted. If the extension relates to the real estate sector (rent, etc.), then the registration of the additional agreement is carried out in the same organization as the main agreement.

For example, Rosreestr. If the main agreement was certified by a notary, then amendments to it are also checked by a lawyer.

Contract extension options

Each company, in agreement with the partner, has the right to extend the term of the agreement shortly before its expiration. The procedure depends on the text of the contract:

  1. If it does not have the possibility of automatic renewal (prolongation), you must sign an additional agreement.
  2. If there is such an opportunity, you don’t have to take any actions - then the contract will be considered renewed automatically. The agreement must contain appropriate wording, for example:

It is important to understand that the additional agreement is drawn up and signed during the period of validity of the main contract, and not after its expiration. If a document is overdue even by 1 day, it is necessary to sign a new document (the new text can be a copy of the old one, but the date must be current).

Expert opinion

Sobolev Dmitry

Administrative offenses lawyer, website expert

The additional agreement must be registered with a notary (or with government agencies), if the main agreement was registered with these departments. Then the parties must indicate in the text who exactly bears the costs of registration and in what proportion.

Extension of the lease agreement

The law provides for the conclusion of a contract for compulsory rental housing for a period of more than a year. To avoid taxes, landlords usually rent the property for 11 months. The agreement is also drawn up for a specified period. Of course, if money is transferred from hand to hand, you can do without documents.

But this significantly increases the chances of fraud or damage to property.

After 11 months, the question arises: should I draw up a new document or renew the old one? In practice, both methods are used. One of the parties may not fulfill its obligations after the contract is renewed. Such a development of events is quite possible.

But, based on judicial practice, it is almost impossible for the non-executive party to justify its position. Therefore, if there are no additional conditions for the lease, you can simply draw up an additional agreement for extension.

Let us note one fundamental point. The agreement contains information only on the lease terms. It is impossible to include changes in rent, rules for handling property, etc. in one document. You can draw up several additional agreements, but it is much easier and more correct to draw up a completely new document.

Expert opinion

Semenov Alexander Vladimirovich

Legal consultant with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.

You can include automatic renewal in your real estate contract. Also write down its conditions. For example, if the tenants do not lead an asocial lifestyle and have kept the property intact, then the contract is automatically extended for the same or another period specified in advance.

IMPORTANT! An additional agreement cannot be drawn up after termination of the contract. If the document has expired by at least a day, then a new legal relationship is formed.

Is it possible to renew the additional agreement automatically? Yes, it is quite. These include water supply or travel insurance contracts.

Ultimately, any change in documents requires additional agreements. The document is drawn up with the voluntary consent of all parties to the transaction. In fact, it is drawn up in the same way as the main contract, although it does not have a strict composition. Any adjustments not specified in the additional agreement are made through the court.

A large number of agreements between counterparties are concluded for a certain period, fixed in the text of the document. However, the legislation provides for the possibility of extending the validity period of the contract being drawn up if certain agreements are reached between the parties.

In this regard, business entities are recommended to have a sample contract with prolongation language.

Deadlines

The provisions on the duration of the agreements in question are not limited from the point of view of civil law. For example, the Labor Code of the Russian Federation contains a clause according to which interested citizens can sign a fixed-term employment contract, which will be valid for 5 years. If the parties to the transaction wish to continue to interact with each other, then they can officially consolidate their decision by drawing up an additional agreement.

Similar documentation is usually used in the following civil relations:

  • when leasing a real estate property - including commercial premises;
  • when storing goods;
  • when providing contract services;
  • when supplying goods, materials and raw materials.

It is worth noting that, in addition to drawing up an additional agreement, the deadlines can be extended through other means.

Among them are:

  • At the time of concluding the first contract, one of its provisions must stipulate that extension of deadlines can be achieved through the exchange of letters in paper or electronic format - if each of the parties to the transaction reflects in the letters the need to extend the established time frame for a certain period, then it will be extended automatically ok.
  • An automatic extension is possible if this is specified in the first contract - one of the clauses states that if one of the parties has no objections, the contract will be extended - such long-term documents are especially characteristic of lease agreements.
  • Certain types of contracts provide for automatic renewal due to existing regulations in the Russian Federation - these include documents related to travel insurance and trust management (even when the extension provision is not specifically prescribed, its presence is implied).


Sample additional agreement on extension of a contract

What is a contract extension?

When cooperation has favorable conditions and trusting professional relationships, partners often need to extend (extend) the period of validity of the agreement. Extending the contract period is used to avoid having to go through the agreement process again.

Accordingly, prolongation of the contract is an extension of its validity period.

The possibility of extension must be noted in the current agreement, since otherwise the specified procedure cannot be carried out without difficulties. In conditions where the contract extension was not provided for in its original version, a special additional agreement must be drawn up to provide for the possibility under consideration.

It is also important that the date of signing the additional agreement must be within the validity period of the main agreement. Otherwise, the additional agreement will be declared invalid, and the extension will not be able to take place due to the lack of conditions, which will lead to the need to conclude a new agreement.

In circumstances where the original version of the agreement provided for special conditions, then when concluding an additional agreement to extend the validity of the contract, they must also be observed. In particular :

  • upon state registration of the original agreement, all additions and annexes to it must also undergo the noted procedure in the same structure;
  • in the case where the agreement was certified by a notary, all appendices and additions to it are also subject to the specified procedure.

How to extend the contract period

Having understood what a contract extension is, you should also study how it is possible to carry out this procedure. Based on the provisions of the law, there are the following options for extending the validity of the agreement :

  • drawing up and signing a new agreement. In these circumstances, the parties to the agreement will be able to conclude a contract not only for a new, more convenient term, but also to establish more comfortable terms of cooperation for both parties. This provision is given in Art. 421 Civil Code of the Russian Federation;
  • drawing up an additional agreement to the contract. It is appropriate to draw up such a document for the purpose of prolonging the main contract. Moreover, the additional agreement also allows for adjustments to the terms of the original contract and their extension;
  • automatic extension, based on the provisions of the law. Thus, there are a number of agreements that are renewed automatically, for example, an agreement on the management of an apartment building on the basis of Art. 162 Housing Code of the Russian Federation;
  • automatic extension by mutual decision. Business partners can independently establish a provision for auto-renewal of the contract. To do this, the initial agreement specifies the conditions under which the extension is given legal force. Practice demonstrates that this condition is often the absence of written notification to the other party to the agreement about the desire to terminate cooperation several months before the expiration of the document.

Additional agreement to the current contract

In order to fully understand that this is a contract extension, you should also consider the features of drawing up an additional agreement to the original version of the contract. The additional agreement must reflect the terms of the extension of cooperation.

The document, like other similar papers, consists of a header, a main part (divided into paragraphs), as well as a final information block, where the parties write down their details and sign.

Thus, the header of the additional agreement must include all the information that is displayed in the main agreement. Only the date of approval of the paper is corrected, and information about the companies and their representatives remains the same.

The main part should include the following items:

  • reference to the main agreement, since most of the terms of the specified document do not undergo any changes. You will also need to indicate the number and date of the original contract;
  • disclosure of information about the parties to the agreement;
  • marking the new date until which the contract is extended;
  • information that a number of previous terms of the agreement (except for the number and date of the agreement) remain relevant for the parties and have the same full legal force;
  • number of copies compiled. The number of published agreements must correspond to the number of parties.

It is important to emphasize that such an additional agreement has significant weight in litigation and other conflicts. When going to court, the document in question may be canceled in the following situations :

  • upon cancellation of the original agreement, which is considered the main one;
  • in the event that the representative of at least one of the parties did not have sufficient authority to represent the interests of the company on the date of signing the initial agreement or additional agreement;
  • when the main agreement has been registered and/or notarized, but the additional agreement has not.

Sample wording

Any renewed contract must contain language indicating the fact of renewal. So, for example, in the case of signing an additional agreement, it is appropriate to use the following wording :

  • upon expiration of the specified period, the agreement is terminated, unless the parties have signed an additional agreement to extend the current agreement for a new period;
  • the extension of the agreement is carried out by endorsing the additional agreement.

When auto-renewing, it is recommended to use phrases such as: “The agreement is valid until and is subject to automatic renewal for a future period, unless one of the parties expresses a contrary opinion no later than a month before the expiration of the contract.” Sample wording for automatic renewal and contract :

  • a similar agreement procedure is valid for all subsequent periods;
  • the agreement can be renewed annually under specified conditions;
  • Repeated extension of the current agreement is relevant.

Expert opinion

Semenov Alexander Vladimirovich

Legal consultant with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.

In order for the contract to be considered unlimited, the noted condition must be stated in the main text. Recommended wording is the following :

  • this contract is concluded for an indefinite period;
  • This contract is considered to be of unlimited duration.

Automatic contract extension

Automatic renewal of the contract is provided for in those agreements that are not renewed by default, based on the law. The considered option for extending cooperation is appropriate to apply only if the conditions of the partnership remain the same.

If the business relationship between the entities is long-term and trusting, then the recommended wording for auto-renewal of the agreement is: “The validity of the agreement can be extended automatically by the counterparties several times.”

Extension of the lease agreement

When drawing up an additional agreement to extend the contract to the lease agreement, it is necessary to take into account that all business transactions relating to real estate for a period of more than a year must undergo state registration. It is understood that if the agreement was drawn up for 12 months, and is subsequently extended by an additional agreement even for one day, then the transaction should be registered with Rosreestr.

In circumstances where the contract expires and a new one is issued only next year, the registration procedure is optional.

Extension of the loan agreement

The extension of the loan agreement depends on the lender. Practice demonstrates that the extension of such contracts is often associated with the borrower’s inability to repay the money. If the lender agrees to give the partner some more time, then it is appropriate to draw up an additional agreement, and if not, then the borrower can rightfully be sued.

If the creditor agrees to prolong the agreement, then there are several options for resolving the situation:

The monthly payment schedule will be revised. It is understood that the monthly loan payment will be reduced, which means it will be easier for the borrower to repay the debt;

  • The loan repayment deadline will be delayed. That is, for a certain period the need to make payments is “frozen”. In most cases, this results in an increase in the total amount of debt;
  • an increase in interest on the loan, since the total loan repayment period also increases;
  • adjusting the ratio of the loan body to its interest. It is assumed that interest payments may be deferred until the final months of debt repayment. That is, the borrower first repays the loan amount and then pays interest.
  • In most situations, the additional agreement on the extension of the loan agreement changes the deadline for repaying the debt. In turn, interest is calculated and expected to be paid regardless of the degree of complexity of the borrower’s situation.

Loan agreement

Some borrowers who have entered into an agreement face financial difficulties and are unable to fulfill their obligations on time. In this case, everything will depend on the lender.

If the lender is ready to sign an additional agreement to extend the contract that satisfies the borrower, then the situation can be resolved beneficially for both parties to the agreement. If the lender does not intend to extend the loan term and revise the monthly payment amount, then the borrower faces legal proceedings.

If the decision is positive, there are several options:

  • Revision of the monthly payment schedule. The amount will be reduced, making it easier for the debtor to repay it.
  • Postponement of the final repayment date. For a certain period of time, the debt is “frozen” and cannot be repaid. For such a service, the lion's share of financial organizations requires an increase in total debt.
  • Increasing the amount of debt.
  • An increase in interest paid on a loan due to an increase in the total period of use of loan funds.
  • Adjustment of the ratio of loan repayment and interest. The latter may be postponed until the final months of debt repayment. Thus, the borrower will soon be able to repay only the body of the loan.

In most cases, the document adjusts the terms of repayment of the loan body. Interest is accrued and paid regardless of the degree of deplorability of the borrower’s financial situation. Debt restructuring only moves the deadlines forward.

Moreover, for prolongation, as a rule, an additional fee is charged, ranging from 1 to 25% of the total debt.

The attached additional agreement form is aimed specifically at extending the loan agreement. One of its clauses describes the amount of debt to be paid.

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