Question 1

Does a contract extension require fresh consideration in Canada?

Accepted Answer

In Ontario and most provinces, fresh consideration is generally required for enforceable contract modifications. However, British Columbia and New Brunswick have adopted the NAV Canada/Rosas approach, where variations may be enforceable without fresh consideration absent duress or unconscionability.

Question 2

What is the difference between a contract extension and an amendment?

Accepted Answer

A contract extension prolongs the original term without changing the substantive terms. An amendment modifies specific provisions of the contract. This template allows you to do both: extend the term and optionally amend specific clauses.

Question 3

Do I need to account for GST/HST in a contract extension?

Accepted Answer

Yes. Under the Excise Tax Act, if the original contract involves taxable supplies, GST/HST obligations continue during the extension period. The template includes an optional GST/HST clause with registration number disclosure.

Question 4

Can either party terminate the extended contract early?

Accepted Answer

Yes. The template includes a termination clause with a customizable notice period. Either party may also terminate immediately if the other becomes insolvent or files for bankruptcy under the Bankruptcy and Insolvency Act.

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