A contract is an agreement signed by two or more persons that establishes a change and termination of the rights or obligations outlined in the Civil Code. It is valid until the moment specified in it when both parties fulfill all their stated obligations. The conditions specified in the agreement are developed and signed with the consent of all parties, if their implementation does not go against the current legislation. This is freedom of contract.
In the case when the regulatory documents relating to legal relations establish certain provisions, including those by the date of the end of the agreement, the parties should not violate them. Only when all clauses of the agreement are agreed and approved by signatures, is it concluded. Legislation defines articles of an agreement that are considered material. These include:
- subject of the contract;
- conditions stipulated by legislative acts;
- basic conditions on which one of the parties emphasizes.
As can be seen from the above, the legislation does not consider the term of its validity as an obligatory component of the contract. However, there are exceptions when the date specified in the agreement relates to the mandatory conditions of one of its parties. There are also certain types of contracts, the duration of which is regulated by law. An example of this is a lease. They cannot be concluded for a period exceeding that specified in legislative acts.
The extension of the contract, or its extension is carried out by agreement of the parties. This procedure may also be carried out in accordance with the law. For example, the extension of a contract for the supply of energy resources, which was concluded for a certain period, is carried out automatically on the same conditions. This is possible in the event that none of the signatory parties makes a statement to terminate it, to make certain changes, or does not propose to revise the agreement. The extension of the contract, thus, can be carried out repeatedly.
If the terms for which obligations can be concluded are regulated by legislative acts, then the actions of the parties should be somewhat different. For example, an extension of a lease is likely only to the extent established by legal acts. If the term of such an agreement is not initially established, but during the period of validity none of the signatory parties announced the termination of the relationship, then it shall lose legal force at the end of the time limit.
Extension of a lease is the most common technique in cases where the originally agreed period is less than one year. Such obligations do not require registration with state bodies. In this regard, in order not to waste money and time, the contract is extended.
Sometimes, when signing obligations for leasing property, the parties initially include a clause on their extension. However, this contradicts legal acts and the essence of such an agreement, which is urgent. At the same time, the Civil Code enshrines the provision on the renewal of obligations for an indefinite period when the lessor has nothing against using the property and the tenant does not cease to own it.
Thus, a contract can be renewed for a new term only by agreement of the signatory parties and for a time period that is not prohibited by law. In order to carry out this procedure, it is necessary to exchange letters. You can specify the conditions for the extension of the contract in one of its clauses upon signing. The terms of prolongation are agreed upon by the participating parties.