Auto-renewal
Automatic renewal · Evergreen clause
An auto-renewal or evergreen clause extends a contract for a further term automatically unless one party gives notice within a stated window.
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Simply put
What it means in ordinary work
The contract renews itself if nobody acts. That can be convenient for stable services but dangerous when prices, needs or alternatives have changed.
Why it matters
Missed notice dates can lock an organisation into another year of cost or poor service. Tracking the date and assessing the renewal are important contract management tasks.
A hypothetical in practice
A hypothetical software subscription renews annually unless either party gives 60 days' notice. The owner adds the notice deadline to the contract register and reviews usage and price 120 days before expiry.
Common pitfalls
A calendar reminder at the deadline is too late. Set the review date before the notice window opens.
Automatic renewal does not always mean the same scope or price. Check the renewal mechanics.
Regional lens
How this lands where you work
The global explanation is canonical. Regional notes are additive, separately sourced and shown with their own review state. They never replace the global meaning.
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As-of date for date-sensitive regional content: 5 November 2026. Read the review policy.