Contract Clause Library
Auto-renewal clause
Automatically extends a contract for another term unless one party gives notice by a deadline.
Auto-renewal keeps a relationship running without a renegotiation every cycle, but it only works fairly if the notice deadline and window are clear on both sides. It matters commercially because a missed cancellation deadline can lock a client into another full term at the current rate — or lock an agency out of a rate increase it meant to apply.
Sample wording
Sample language (illustrative, not legal advice)
This Agreement will automatically renew for successive 12-month terms unless either party provides written notice of non-renewal at least 60 days prior to the end of the then-current term.
Red flags
- Notice windows longer than 60-90 days, which are easy to miss and heavily favor whoever benefits from renewal
- Renewal terms that silently change price or scope rather than carrying forward the current terms
- Notice required by a method (certified mail only, a specific email address) that's unusually easy to get wrong
How MarginFlow reads it
MarginFlow tracks the notice deadline against today's date and surfaces an alert as that window approaches, so a decision to renew or cancel gets made deliberately rather than by default because nobody noticed the date.
Related reading