Extending a Contract | Zoho Contracts

Extending a Contract


Introduction

Contract extension in Zoho Contracts means an extension to the duration of the contract. The extension does not include the alteration of the scope of the contract. The terms and obligations in the contract during the current term will be applied for the extended term as well. To learn how to edit the language in the contract before extending, see Amendments. 

When a contract owner extends a contract, an extension letter will be automatically generated based on the predefined template, or as customized by the organization admin. The extension letter will capture and display the contract history in chronological order (past amendments, renewals, and extensions) and the current extension details. 

Note: The contract owner can only extend the contract if its term is definite. 
Extend a Contract 
  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract in the Active state that you want to extend. 
  3. Click More  at the top-right corner of the contract details page, then choose Extend Contract. 
  4. Enter the details in the Extension Details form, then click Save and Continue.The contract will move to the Active - Extension Pending state. The primary action in the contract during this state changes based on the value chosen in the Sign By field of the Extension Details form.


Sign By

Primary Action

Both Parties 

Send for Signature 

Own Party Only 

Send for Signature

None 

Mark as Extended 


  1. Click Mark as Extended. 


The contract will be extended, and will be moved to the Active state. The extension letter will be automatically generated. 


Clicking Send for Signature will redirect you to Zoho Sign. Refer to the detailed steps in the next section for more information. 

Note: 

  • If the contract is associated with an approval workflow, click Submit for Approval at the top of the contract details page when the contract is in the Active - Extension Pending state to get the extension approval.
  • Upon submitting for approval, the contract's approvers will receive the approval request notification. The approvers can open the contract from the notification or the Pending Approvals view in the Activities module.
  • Upon approval, the contract will move to the Active - Extension Approved state. The primary action in this state will either be Send for Signature or Mark as Extended, based on the value in the Sign By field. 

Send Extension Letter for Signature 

In cases where the extension letter needs the signature of both the parties or just your own organization for a contract to be extended, the contract owner needs to send the contract for signature. In such contracts, the primary action after clicking Extend Contract from the More menu  will be Send for Signature.  


To send the extension letter for signature: 


  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract in the Active - Extension Pending state whose extension letter you want to send for signature. 
  3. Click Send for Signature at the top of the contract details page, then add signers from the left panel. You will be redirected to Zoho Sign with the extension letter loaded.
  4. Choose the recipient from the Recipients section in the right panel.
  5. Drag and drop the required fields for the respective recipient from the Fields section in the right panel to the required locations in the document.
  6. Repeat steps 4 and 5 until you add the signature and the other required fields for all the recipients. 
  7. Click Send.   


The signers will receive a signature request email from Zoho Sign. The contract will be extended, and will be moved to the Active state when all the signers sign the extension letter. 

Note: Zoho Contracts has built-in templates for termination letter, renewal letter, extension letter, and amendment letter. An administrator can customize the templates. To learn more, see Contract Letters.  
Edit Extension Details
  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract whose extension details you want to edit. 
  3. Click More  in the contract details panel on the left, then choose Renewals. 
  4. Click More  next to the extension that you want to edit, then choose Edit. 
  5. Change the values in the Extension Details form as required, then click Update. 

Note: The contract owner can only edit the extension details when the contract is in the Extension Pending state.
 Delete an Extension
  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract whose extension you want to delete.
  3. Click More  at the top-right corner of the contract details page, then choose Delete Extension. 

Note: The contract owner can only delete the extension when the contract is in the Extension Pending, Extension Approval Pending, or Extension Approved state. 
Send Extension Letter Post Extension
  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract in the Active state whose extension letter you want to send to your counterparty contacts. 
  3. Click More  at the top-right corner of the contract details page, then choose Send Extension Letter. 
  4. Select the counterparty contacts in the To field in the Send Extension Letter dialog box. 
  5. Check the Add Cc checkbox to copy other people in the extension email.
  6. Enter the other details, then click Send. 


The counterparty contacts and other members that you have selected will receive the extension letter of the contract via an email. 


View Extension History

  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract whose extension history you want to view. 
  3. Click More  in the contract details panel on the left, then choose Renewals. 


The Renewals tab will display the extension and renewal history of the contract in chronological order.