Term & Termination
Automatic renewal (evergreen) terms
An auto-renewal clause quietly rolls the contract into a new term unless someone cancels in a specific window. Miss that window and you can be locked in for another full term at the old price. Month-to-month renewal, or renewal only when both sides positively agree, avoids the trap.
What to look for
Whether the contract renews automatically unless cancelled, the length of each renewal, and how long the opt-out notice window is. Long renewals with a narrow cancellation window can silently lock you (or the client) in.
How Clause rates it
RedAuto-renews for a long further term (e.g. 12 months) with a very short or awkward opt-out window, or a notice period so long it is easy to miss and get locked in.
AmberAuto-renews but for a shorter term, or with a reasonable but easily-overlooked notice window that should be diarised.
GreenNo auto-renewal (renews only by positive agreement), or renews month-to-month with a short, clearly stated cancellation notice.
Wording you can ask for
Suggested redline
This agreement runs for the initial term and then continues month to month unless either party gives 30 days' written notice. It does not automatically renew for any fixed further term.
See this on your own contract.
Paste your contract and watch these rules light up your own clauses.