← Glossary · contracts
Auto-Renewal
A contract clause that renews the agreement automatically if neither party gives notice within a specified window.
Auto-renewal terms usually require the buyer to notify the vendor in writing 30, 60, 90, or 120 days before the end of the current term to prevent the renewal from firing. Miss the window, and the contract extends for another full term at the existing or escalated price. The clause exists because vendors hate manual re-sales. The fix on the buyer side is a renewal calendar that fires at notice-minus-30-days, plus an annual review of every contract above a threshold dollar amount.