first extended term
Definition
The first extended term is a specific period of time added onto an original contract or agreement, giving both parties more time to continue their arrangement under the same or slightly modified conditions. Think of it as the first official renewal period built into a contract, separate from the original term.
Example
Your commercial lease might have an original two-year term, followed by a first extended term of one year that you can activate by giving the landlord 60 days notice before the original lease expires.
Watch Out
Make sure you know exactly what steps you need to take and by what deadline to actually trigger the first extended term, because missing that window can mean losing your right to renew entirely.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.