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The current lease requires a monthly payment of $1500, and John is responsible for all utilities. The lease begins on March 1. The owner agreed to notify John of any changes to the lease conditions before January 1, the date of the extension. If there is no change in the conditions and John wishes to stay in the apartment, he informs the owner before January 1 that he wishes to remain in the same conditions as before. As of November 1, 2007, the parties entered into a lease for a commercial property in Paarl to operate the operations of a gas station. The agreement is expected to be for an initial term of five years, with a period of “5 years plus 5 years”. Initially, the rent was R18,000 per month and increased by 8% per year over the initial period. An extension option is a clause in a financial agreement that defines the terms of renewal or renewal of an initial contract. The extension option appears as an agreement in the original agreement and contains specifications in which entities can extend or extend the initial terms of an specified overtime. At the expiry of its original contract, BSG sued CheckVelocity, arguing that CheckVelcity`s non-payment of taxes, allegedly due under the survival provision under its previous contract, constituted an infringement. The contract provided that the payment of a transfer contract called “transfer rights” would survive the termination of the contract and would continue “until the expiry of the customer agreements, which could have been renewed.” A renewal option in a lease agreement allows the taker to extend or renew a lease beyond its original terms. Leases can apply to both residential and commercial units. As a general rule, the same principles apply to a private tenant.

Their maturities are usually about one year. With an extension option, a tenant can choose an extension or non-residence because of his individual circumstances. For example, a start-up can rent office space for three years. A renewal option would allow the company to extend or renew the lease in order to remain in the offices beyond the three-year lease period. This can be beneficial for the company if it works well on the site, as it allows the company to stay for an additional mandate. In the absence of an extension option, the transaction could be ousted and another principle, which could, for example, offer more money, could instead collapse. For clarity, we will designate the end of the lease as the expiry date, and the date John must inform the owner that he wishes to stay is the deadline for renewal. Renewal options can also be important for commercial contracts.

Companies that regularly offer goods or services under a third-party vendor agreement may wish to include a renewal option in their trade agreements to support long-term work. Lawyers are often accused of using two terms when they do. However, in some cases, it seems useful to distinguish between the extension and the extension of a contract. The outcome of this case would probably have been different from the simple drafting, noting that the underlying contract could be “extended” after the termination date and that the residual tax would have survived the termination of the contract and continued “until the expiry of the customer agreements, as they could have been renewed or extended”. Renewal. A change from something old to something new; such as renewing a note; The renewal of a lease. See Novation and 1 Bouv. Inst. 800. John moves into a new apartment and signs a lease with a renewal option. The lease is for one year, and if John wishes to renew the lease for an additional year, he must notify his landlord two months before the lease expires.