Auto-renewal and evergreen clauses: how to spot and fix them

The trap · An evergreen clause renews the agreement automatically — often for the same length as the original term — unless someone cancels. A one-year trial commitment can quietly become a second and third year. Look for wording like "shall automatically renew for successive periods" or "renews unless either party gives notice".

What to ask for · Ask for renewal only by mutual written agreement, or for renewals to be month-to-month after the first term so you can leave with short notice.

The trap · Many clauses require notice 60 or 90 days before the term ends — sometimes only within a specific window, and sometimes only by a particular method such as certified mail. Cancel a day late, or by email when the contract demands letter, and the renewal still applies.

What to ask for · Ask for a 30-day notice period, written notice by email accepted, and the ability to cancel at any time before the renewal date rather than inside a fixed window.

The trap · Renewal clauses often pair with escalators: "fees may increase upon renewal" or "then-current list price". Combined with a missed cancellation deadline, you can be locked into a higher price you never agreed to.

What to ask for · Ask for a cap on renewal increases (for example, a fixed percentage), advance written notice of any new price, and the right to cancel without penalty if the price rises.

The trap · Nothing obliges the other party to remind you that renewal is coming, so the clause relies on you forgetting. Some jurisdictions have consumer rules requiring reminders, but business contracts are often not covered.

What to ask for · Ask that the other party send a written reminder a set number of days before the cancellation deadline. Either way, put the deadline in your calendar the day you sign.