1) Voluntary restoration of a legal relationship established by a previously agreed but expired contract. In other words, the extension is not just an extension of a previous contract, but effectively the creation of a new treaty that reinstates the previous and now renewed contract. (In reality, however, the term “renewal” is often used interchangeably with the extension.) Renewal clauses are often found in leases, promissory notes or insurance policies. The parties may agree that renewal provisions will be automatic after a certain period of time or require either party to notify its intention to renew the agreement. The act of renewal or renewal. The replacement of a new grant, commitment or entitlement in place of an expired scholarship of the same nature and under the same conditions as before; such as the renewal of a bond, a lease, a patent. See Carter v. Brooklyn L. Ins.
Co., 110 N. Y. 15, 17 N. E. 396; Gault v. McGrath, 32 Pa. 392; Kedey v. Petty, 153 ind. 179. 54 N.
E. 692; Pitts v. Halle, 19 Fed. Cas. 758. n. Maintain an existing contract for an additional period, such as a lease, promissory note, insurance policy or other contract. Renewal usually requires a letter or action that proves the new term.
Rehabilitation; Restoration; Replacement of a new right or obligation by another of the same nature or a similar obligation. RENEWAL. A change from something old to something new; such as the renewal of a grade; the extension of a lease. See Novation and 1 bouv. Inst. n. 800. In the case of bonds, renewal means an extension of the maturity. An extension clause requires the conclusion of a new lease, as opposed to an extension in which an existing lease agreement is extended without performing a new instrument. (2) The resubmission of an application that the court initially rejected or suspended. For example, Rule 50 of the Federal Rule of Civil Procedure allows parties to renew an application for judgment 28 days after trial. [Last updated April 2021 by Wex Definitions team] Supported by Black`s Law Dictionary, Free 2nd ed., and The Law Dictionary.
As with all contracts, an extension provision must be effective. If the original contract contains the extension clause, the consideration provided for in the original contract gives effect to the extension clause. If the parties wish to extend the contract retroactively, although there is no extension clause in the original contract, they must provide new consideration. However, consideration may take any form accepted by the parties. Referring to a California Court of Appeals case in connection with a lease renewal, Simons v. Young stated that “as long as the tenant has considered the option to renew, and there is no doubt that he has done so, the size, amount or nature of the consideration is irrelevant.” .
