Original Source: US Legal.com

“An automatic renewal clause allows an agreement to continue for a defined period if the existing agreement isn’t renegotiated within a specified time measured from the expiration of the current contract. The term of renewal depends on the specific contract language, but such clauses generally provide that the contract shall be automatically renewed for the same period (or some lesser term) unless either party, at some stipulated and predetermined time (i.e., 60 days before expiration), gives notice to the other of its desire to end the agreement. Generally, if the contract doesn’t provide a time period for the contract to be subject to renewal, it may be renewed indefinitely…”

https://definitions.uslegal.com/a/automatic-renewal-clause/

Contributors: Open Source
Categories: Industry Articles, SIG U Resource
SRC Type: Contract Development, Sourcing