Option to Renew
/ˈɒpʃən tuː rɪˈnjuː/
Definitions
- (n.) A contractual clause granting the lessee or licensee the right to extend the term of an agreement under specified conditions.
The lease includes an option to renew for an additional five years.
- (n.) A right, but not an obligation, allowing a party to continue a contractual relationship by agreement beyond the original term.
Exercising the option to renew depends on written notice within 60 days before expiry.
Forms
- option to renew
Related terms
See also
Commentary
Commonly found in leases and licenses, precise notice requirements and terms for exercising the option to renew should be clearly drafted to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.