What must be true for a contract to be extended?

For a contract to be extended, it is essential that its current status is appropriate for such an action. If the state of a contract is either Active or Expired, it indicates that it is still eligible for renewal or extension. An Active status suggests that the contract is currently in effect, while an Expired status suggests that it has lapsed but may still be eligible for renewal if terms allow it.

This ability to extend under these conditions supports the continuity of services or agreements outlined in the contract, allowing organizations to maintain their relationships without the need for renegotiation from scratch.

In contrast, a state that is Canceled would terminate the possibility of extending the contract. As such, any extension must have established criteria where the contract's active state (i.e., still in force) or an expired status provides a framework for consideration. This rationale justifies why having the state as Active or Expired is a necessary condition for a contract to be extended.