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Contracts

Auto-Renewal Clause

A term that renews the contract automatically unless you cancel.

An auto-renewal (evergreen) clause extends a contract automatically for another term unless you give notice to cancel within a specific window. Miss the window and you’re locked in again. Note the exact notice period and how cancellation must be delivered.

In practice

“This agreement renews for successive 12-month terms unless either party gives 60 days’ written notice.” — mark that 60-day deadline.

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The clause that signs the next contract for you

Auto-renewal (evergreen) clauses extend agreements unless notice is given within a window — often 30–90 days before term end, which arrives long before anyone thinks about renewal. In your document, find the exact notice deadline and method (certified mail? a portal?), the renewal length (another full year is common), and any price-escalation on renewal. Many states now require consumer subscription renewals to include reminders and easy cancellation; B2B contracts enjoy no such mercy. Calendar the deadline the day you sign — that one entry is the whole defense.

See this clause in your own document: run a free analysis — findings quote the exact language.

What it looks like in a real contract

“This Agreement shall automatically renew for successive twelve-month terms unless either party provides written notice at least ninety (90) days prior to the end of the then-current term.”

The trap is the notice window, not the renewal. Calendar the notice deadline the day you sign — a 90-day window on a 12-month term means your real decision date is month nine. Several states now require renewal reminders for consumer contracts; business contracts get no such mercy.

Related: Notice requirements explained · Check a vendor contract