Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
The extension option for a lease enables tenants to increase or extend the earlier duration of the lease as per the agreement that exists. If both parties had to keep signing new agreements each year or upon the expiry of each agreement, then it would make for a cumbersome procedure. Whenever there is an extension option in the lease, the continued occupancy terms are outlined through the agreement in question.
Extension option is a common lease agreement provision in the real estate sector and covers various types of leases as well. For instance, tenants may keep occupying any property at the same rate as mentioned in the earlier agreement, while there could also be a provision for an increase in the percentage as well. If tenants forecast that they will occupy a property for an extended duration, then verifying the inclusion of an extension option in the contract is always recommended.
