Renewing a Contract

If the parties to an agreement do not wish to continue the agreement past its end date, the following language is commonly used:

TERM AND TERMINATION

This contract starts [month, day, year], and ends [month, day, year].

Either party may terminate this contract at any time, with or without cause, by giving the other party thirty (30) days written notice of termination.

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On the other hand, if the parties will want to continue the agreement as it is past the original end date, the contract should include the following language to make the contract automatically renew for successive one year periods:

TERM AND TERMINATION

This contract starts [month, day, year], and shall continue in full force until [month, day, year].

Either party may terminate this contract at any time, with or without cause, by giving the other party thirty (30) days written notice termination.

At the expiration of the original term of this agreement, this agreement shall continue in full force and effect on a year-to-year basis unless thirty (30) days written notice of termination is given by either party to the contract.

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If an existing unexpired contract does not include the automatic renewal language, but the parties desire to continue the contract beyond its expiration date without any other substantive changes to the contract, a simple amendment may be executed before the contract expires to extend the term or to make the contract renew automatically. Be sure that the amended contract contains a reasonably short notice of termination provision if the automatic renewal provision is included. Use the following as a prototype for drafting such an amendment:

AMENDMENT

This amendment is made to that agreement [contract number] previously executed by and between [AGENCY NAME], hereinafter called "[AGENCY]" and TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER, [Office or School of _______, Division or Department of _______, City,] Texas, hereinafter called "TTUHSC".

It is mutually understood and agreed by and between the undersigned contracting parties to amend that previously executed agreement as follows:

Add the following sentence to [state the relevant Article, paragraph, etc.]:

At the expiration of the original term of this agreement, this agreement shall continue in full force and effect [until month day, year] [on a year-to-year basis, unless thirty (30) days written notice of termination is given by either party to the contract].

All other terms and conditions that are not hereby amended are to remain in full force and effect.

[Insert the appropriate signature blocks for TTUHSC and for AGENCY here:]

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If other changes are also anticipated, it is probably best to draft a complete renewal contract that includes all the changes that the parties desire.