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How do you exercise an option to extend at the term of an agreement? Its actually not too hard. Hi everyone Simon here from The Contract Company -Contracts thats what we do, all day, every day and sometimes overnight lucky yes, it is lucky us. Anyway, so youve got a contract. In the contract there is a set term, say one, two, or three years and the contract also has an option period where you can extend at the contract for that further term. Whatever it is one year, two years, six months doesnt matter. How do you exercise the option? Right, number one have a look at the wording of the clause and a lot of people get this wrong because the clause will often say something like, Party A is able to exercise the option if Party A sends a letter or an email or some sort of written notice to Party B saying that the option is being exercised. So thats pretty simple Party A All I need to do is follow what the clause says or write an email to Party B saying under clause blah blah of the cont