Auto-Renewal Clauses
How evergreen contracts quietly lock you in — and how to take back control.
What Is an Auto-Renewal Clause?
An auto-renewal clause (sometimes called an "evergreen clause") automatically extends a contract for an additional term — often one year — unless one party provides written notice within a specified window. They are extremely common in software licenses, service agreements, commercial leases, and vendor contracts. The danger is not that auto-renewal exists — it is that many business owners do not realize they are subject to one until it is too late.
How the Trap Works
What to Look For
Renewal term length
Is the renewal term the same as the initial term? A 3-year contract that auto-renews for 3-year terms is far more dangerous than one that renews annually.
Notice window
How many days' notice is required? 30 days is standard. 90 or 120 days is aggressive and easy to miss.
Notice method
Must notice be in writing? Sent by certified mail? To a specific address? Failure to follow the exact procedure may invalidate your notice.
Price escalation
Can the other party increase pricing upon renewal? Some contracts allow automatic 3–5% price increases per renewal term.
Termination for convenience
Can you terminate the renewed term early, or are you locked in for the full renewal period?
How to Protect Yourself
As soon as you sign any contract with auto-renewal, set a reminder 30 days before the notice deadline. Set a second reminder 60 days before.
Ask for a shorter notice window (30 days instead of 90), the right to terminate the renewed term for convenience, or removal of auto-renewal entirely.
When in doubt, send your non-renewal notice early and by certified mail. Keep a copy. Follow the exact procedure in the contract.
Use the approaching renewal as an opportunity to renegotiate pricing, add services, or update terms.
Oklahoma Law
Oklahoma does not have a specific statute regulating auto-renewal clauses in commercial contracts (unlike some states that regulate auto-renewal in consumer contracts). This means the clause is generally enforceable as written. The best protection is careful review before signing.
Bottom Line
Auto-renewal clauses are not inherently bad — they provide continuity for both parties. The danger is in not knowing they exist. Read every contract for renewal provisions and calendar the opt-out date the day you sign.
Questions About Your Legal Matter?
These resources provide general information. For guidance specific to your situation, contact Addison Law Firm.
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