Category: Clauses
Auto-renewal clause
A contract provision that extends the agreement for another term unless one party gives notice to cancel by a specific date.
An auto-renewal clause — sometimes called an "evergreen clause" — automatically extends a contract for another term (usually one year) unless one of the parties gives formal notice to cancel before a specific date. The cancellation window is called the notice window, and missing it is one of the most common causes of unwanted contract extensions.
Auto-renewals are everywhere in B2B: software subscriptions, service agreements, commercial leases, and insurance policies. They favor the vendor because inertia wins — the customer has to remember to act, or they keep paying. A typical clause reads: "This Agreement will automatically renew for successive one-year terms unless either Party provides written notice of non-renewal at least 60 days prior to the end of the then-current term."
The notice window (commonly 30, 60, or 90 days) is where tracking software earns its keep. A typical office lease with a 90-day notice window is effectively a sunk decision 92 days before renewal, not on the actual renewal date. Contrack surfaces these windows in advance so they're never missed.
Some jurisdictions restrict auto-renewal enforceability — California's §17602, for example, requires conspicuous disclosure for consumer contracts. B2B auto-renewals are generally enforceable everywhere, which is part of why tracking them matters.