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Legal Continuance Agreement

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LEGAL CONTINUANCE AGREEMENT

This Legal Continuance Agreement (the "Agreement") is made and entered into as of Day: Month: Year: by and between Party A: , and Party B: (each a "Party" and collectively the "Parties").

RECITALS

WHEREAS, the Parties entered into that certain agreement entitled "" dated Day: Month: Year: (the "Original Agreement");

WHEREAS, circumstances have arisen such that the Parties desire to continue, extend and expressly preserve the rights, obligations and remedies provided under the Original Agreement for a defined continuance period and to set forth terms under which such continuance shall operate; and

WHEREAS, the Parties intend that this Agreement operate to toll applicable time periods, preserve claims and maintain existing covenants and security interests to the extent set forth herein.

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS

"Continuance Period" means the period beginning on the Effective Date and ending on , unless earlier terminated in accordance with this Agreement.

"Effective Date" means the date first written above.

2. CONTINUANCE; SCOPE

2.1 Continuance of Obligations. Subject to the terms and conditions of this Agreement, the Parties hereby agree that the Original Agreement shall remain in full force and effect during the Continuance Period, except as expressly modified by this Agreement. All covenants, representations, warranties, security interests, and remedies set forth in the Original Agreement shall continue to apply and shall not be deemed waived, released, or extinguished by reason of this continuance alone.

2.2 Tolling. To the maximum extent permitted by law, the Parties agree that any statute of limitations, notice periods, cure periods, or other time-based requirements arising under the Original Agreement or applicable law shall be tolled during the Continuance Period, except as expressly provided otherwise in this Agreement.

3. TERM AND TERMINATION

3.1 Term. The term of this Agreement shall commence on the Effective Date and continue through the Continuance Period, unless earlier terminated pursuant to Section 3.2.

3.2 Termination for Cause. Either Party may terminate this Agreement, in whole or in part, upon written notice to the other Party if the other Party materially breaches any provision of the Original Agreement or this Agreement and fails to cure such breach within days after receipt of written notice identifying the breach.

4. CONSIDERATION

4.1 Consideration. In consideration for the continuance and the mutual covenants contained in this Agreement, Party A shall pay to Party B the sum of $, payable on or before , subject to offset only as expressly provided in the Original Agreement or this Agreement.

5. REPRESENTATIONS AND WARRANTIES

5.1 Mutual Authority. Each Party represents and warrants that it has full power and authority to enter into this Agreement, that the execution and delivery of this Agreement have been duly authorized by all necessary corporate or organizational action, and that this Agreement constitutes a legal, valid and binding obligation enforceable against such Party in accordance with its terms.

5.2 No Conflicts. Each Party represents that the continuance contemplated by this Agreement will not violate any applicable law, regulation, contract or order binding upon such Party.

6. INDEMNIFICATION

Each Party (the "Indemnifying Party") shall indemnify, defend and hold harmless the other Party and its affiliates, officers, directors, employees and agents (collectively, "Indemnified Parties") from and against any and all losses, claims, damages, liabilities and expenses (including reasonable attorneys' fees) arising out of or resulting from any breach of this Agreement or the Original Agreement by the Indemnifying Party, provided that the Indemnified Party provides prompt written notice of any claim and cooperates in the defense thereof.

7. CONFIDENTIALITY

The Parties agree that all information designated as confidential under the Original Agreement or otherwise reasonably understood to be confidential shall continue to be subject to the confidentiality provisions of the Original Agreement during the Continuance Period and thereafter to the extent required by the Original Agreement.

8. NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses set forth above (or such other address as a Party designates by written notice). Notices shall be effective upon receipt when delivered personally, by nationally recognized overnight courier, or by certified mail, return receipt requested.

9. AMENDMENTS; WAIVER

No modification, amendment or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties. No failure or delay by either Party in exercising any right or remedy shall operate as a waiver of such right or remedy.

10. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles.

11. ENTIRE AGREEMENT

This Agreement, together with the Original Agreement and any documents incorporated by reference, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous negotiations, understandings and agreements, whether written or oral, relating to such subject matter.

12. SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect and the Parties shall negotiate in good faith to replace any invalid, illegal or unenforceable provision with a valid provision the economic effect of which comes as close as possible to that of the invalid provision.

13. COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures delivered by electronic transmission shall be binding for all purposes.

14. ADDITIONAL PROVISIONS

Party A — Printed Name:

By:

Date:

Party B — Printed Name:

By:

Date:

Enter text✕

What a Legal Continuance Agreement Is and when it’s used

The Legal Continuance Agreement is a written instrument parties use to preserve, extend, or expressly continue specific rights, obligations, claims, or deadlines that would otherwise expire under a primary contract or statutory period. Typical scenarios include tolling a statute of limitations, preserving liens or defenses during settlement negotiations, or extending covenants tied to real property or probate. The agreement identifies the parties, describes which obligations continue, sets effective and termination dates, and records execution formalities (signatures, notarization, witnesses) needed to support enforceability in court or administrative proceedings.

Why use a Legal Continuance Agreement

A Legal Continuance Agreement prevents inadvertent lapses in rights by documenting parties’ mutual consent to preserve claims or duties. It reduces uncertainty about timing, supports later enforcement, and provides a clear written record courts or third parties can review when assessing timeliness or scope of preserved obligations.

Why use a Legal Continuance Agreement

Who typically prepares and signs this agreement

Involve any person who has authority to bind the specified right; obtain legal review when statutory deadlines or third-party recording are implicated.

  • Corporate and in-house counsel managing tolling or extension of commercial obligations during negotiation or dispute resolution
  • Real estate closing agents and buyers/sellers preserving title exceptions, easements, or continuing obligations post-closing
  • Trustees, personal representatives, and heirs documenting continuation of probate-related claims or obligations

Representative signer roles

Corporate Counsel

Corporate counsel typically drafts or reviews the continuance language, confirms internal authority to extend or preserve obligations, and certifies that the agreed continuance aligns with corporate governance documents and applicable statutes.

Settling Parties

Individuals or corporate signatories are responsible for executing the agreement, ensuring authorized signatures appear, and confirming any required notarization, witness, or recording steps are completed to maintain enforceability.

Core elements to include in a professional continuance agreement

A well-drafted continuance agreement clarifies which rights continue, the duration of the continuance, who is bound, and how the arrangement interacts with existing obligations and third parties.

Parties

Full legal names and capacities (e.g., Trustee, LLC) for each signatory to ensure binding effect.

Scope of Continuance

Clear description of the claims, obligations, liens, or contractual provisions being continued or tolled.

Effective and End Dates

Specify start and expiration dates or an event that terminates the continuance.

Consideration

Statement of consideration when required under contract law to support enforceability.

Execution Formalities

Signature blocks, notarization language, and witness lines as required by jurisdiction or document type.

Record and Notice

Instructions for recording, serving notice, or filing with a court or recorder if necessary.

Step-by-step: completing a Legal Continuance Agreement

Follow these steps in order to prepare, execute, and distribute a legally sound continuance agreement.

  • 01
    Draft the language: Define scope, parties, effective date, and termination clearly.
  • 02
    Confirm authority: Verify signers have corporate or statutory authority to bind the rights.
  • 03
    Execute with formalities: Sign, date, and complete any required notarization or witness steps.
  • 04
    File and distribute: Record with the county recorder or file with court if required; provide copies to all parties.

Configuring a typical online execution workflow

Set up the digital flow to ensure each required step is completed and audit data is captured.

Field Configuration
Signature Authentication Email link or SMS code; use stronger methods for high-risk transactions
Notary Requirement Enable remote online notarization or mark for in-person notarization
Witness Fields Add witness name and signature locations when state law requires it
Retention Settings Configure secure storage, audit trail capture, and access permissions

Delivery methods and technical requirements

Confirm the chosen provider can produce a tamper-evident, auditable record and meets any industry compliance such as HIPAA when health data is present.

  • File formats: PDF, DOCX supported
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Authentication: Email, SMS code, or advanced methods

Where to file, send, or store the completed agreement

Routing depends on the agreement’s purpose—recording, court filing, or internal retention each have different destinations.

  • Record with County: Record if document affects title or lien status
  • File with Court: File when continuance relates to pending litigation
  • Serve Opposing Parties: Provide notice or service per applicable rules
  • Retain with Counsel: Keep an executed copy in client or corporate files

Key timing considerations and processing expectations

Track effective dates, filing windows, recording cutoffs, and any statutory notice periods to avoid unintended expiration.

Effective Date:

Date governs when the continuance begins

Execution Deadline:

Complete signing by the date parties agree

Recording Timeframe:

Record promptly to ensure third-party notice

Notary/RON Sessions:

Schedule notarization per state requirements

Distribution:

Provide executed copies within a reasonable period

Key milestones from drafting through retention

Milestones show the life cycle from negotiation to long-term storage and compliance review.

01

Drafting

Create precise language and define scope

02

Approval

Obtain internal and legal approvals

03

Execution

Signatures, notarization, and witness attestations

04

Recording & Retention

Record if needed and store for required period

Common preparation mistakes to avoid

  • Using vague continuance language that fails to identify which claims or contract sections continue
  • Omitting required execution formalities such as notarization or witness statements required by state law
  • Mismatching party names or capacities, causing attribution or authority disputes later
  • Failing to record or serve notice when third-party recognition depends on recording or service

Penalties and legal risks for incorrect continuance agreements

Statute Lapse: Loss of claim rights
Recording Rejection: Cloud on title
Contractual Breach: Potential damages exposure
Notary Defect: Non-enforceability risk
Tax Consequences: Reporting or withholding issues
Costs: Attorney and filing fees

How a continuance agreement differs from related documents

Compare continuance agreements to common alternatives so you choose the right instrument.

Document Type Legal Continuance Amendment/Extension
Purpose preserve rights modify terms
Typical Formalities signature/notary signature only
Filing Required sometimes rarely
Use Case tolling or preserving claims change obligations

eSignature vendor comparison for executing this agreement

Basic vendor pricing and feature availability to consider when sending continuance agreements for signature. Do not treat this table as legal advice on recordability or notarization processes.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year limit Varies by plan Varies by plan Varies by plan

Real-world scenarios where a continuance agreement is helpful

Two concise examples show common contexts and practical outcomes for continuance agreements.

Settlement Tolling Example

A plaintiff and defendant agree to toll statute of limitations during settlement talks to avoid dismissal.

  • The agreement specifies a 180-day tolling period.
  • The written continuance preserves claims while negotiations proceed and provides clear proof of mutual consent if talks resume or litigation restarts.

Real Estate Title Continuance

Buyer and seller preserve a contractual obligation affecting title pending remediation.

  • The document references the recorded instrument by book and page.
  • Recording the continuance and attaching the legal description ensures the preservation of buyer remedies and notice to third parties.

Practical tips for accurate and efficient completion

Follow drafting, execution, and distribution best practices to reduce disputes and processing delays.

Use precise language
Define the continued obligations by contract section or lien reference; avoid general phrases such as 'all obligations' without specification because ambiguity breeds litigation.
Confirm signer authority
Obtain corporate resolutions or trustee certifications when an entity signs; lack of authority can render the continuance voidable.
Match recorded instruments
When recording is required, ensure the legal description and instrument references exactly match the county recorder’s standards to avoid rejection.
Document audit trail
Capture signer identity, timestamps, and any notarization or witness details in an auditable record to support later enforcement.

Frequently asked questions about Legal Continuance Agreements

Answers to common questions about enforceability, notarization, electronic execution, and correcting mistakes.


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