Document background
The Letter of Intent to Extend Contract is commonly used in Malaysian business practice when parties wish to continue their contractual relationship beyond the original term. This document type serves as a bridge between the existing contract and its formal extension, providing clarity and certainty during the transition period. It becomes particularly relevant when complex commercial relationships require continued operation while detailed extension terms are being negotiated. The document typically includes references to the original contract, proposed duration of extension, any modified terms, and timeline for finalizing the formal extension agreement. Under Malaysian law, while such letters are generally non-binding, they carry significant commercial weight and can create certain obligations, particularly regarding good faith negotiations.
