Clause library
Auto-renewal clause, explained
An auto-renewal clause rolls a fixed term into a further term unless one side gives notice to stop it — so the notice window is the line that matters.
Last updated 28 October 2026
What does an auto-renewal clause do?
An auto-renewal, or evergreen, clause continues a retainer or services term unless notice is given before the end date. In business-to-business deals the clause decides. Consumer subscriptions have extra information and cancellation rules. We write the term, the renewal term and the notice window on one shared page.
How do you stop an auto-renewal?
Give notice inside the window the clause sets, in the form the notices clause requires. Miss the window and a further term begins. Put a diary date in the clause itself — for example 30 days before the end date — so both sides can see it. Keep the live term on the same signed version, not a forgotten PDF.
How long is a typical notice window?
Thirty days before the end of a twelve-month retainer is a common commercial shape; ninety days on a short initial term is a trap. The window should be long enough to hire a replacement, and short enough that nobody is locked in after the relationship has soured. Count business days or calendar days, and say which.
What happens to price on renewal?
If the clause is silent, the same fees usually roll. If the supplier wants a right to raise price, say how much notice is given and whether the client can walk instead. A silent fees-may-be-updated line is how a renewal becomes a surprise invoice. Tie any increase to the same notice window, or to change control.
Is this different for consumers?
Yes. Extra information and cancellation rules apply to consumer subscriptions. A brand on a services agreement or consulting agreement is a business client; a private individual on a repeating consumer subscription is not. Write auto-renewal for the client you actually have. When in doubt, make renewal opt-in rather than opt-out.
Example wording
Example · our own drafting
This agreement starts on the Start Date and continues for an initial term of [12] months. It then renews for successive [12]-month terms unless either party gives at least [30] days' written notice, expiring at the end of the then-current term. Fees for a renewal term are the Fees then in force, unless the Supplier has given at least [30] days' written notice of a change and the Client has not terminated under this clause.
In Plain English
The contract runs for twelve months from the start date. It then rolls for another twelve months unless either side gives at least 30 days’ written notice, timed to land at the end of the current term. The fee stays the same unless the supplier has given 30 days’ notice of a new fee and the client has not ended the contract.
What should you watch for?
| Point | Watch for | Push for |
|---|---|---|
| Window | Ninety days’ notice on a three-month term. | A notice window that fits the length of the term. |
| Method | Notice that must be posted to a registered office only. | The same email channel as the notices clause. |
| Price | Fees ‘as updated from time to time’ with no walk-away. | Notice of any increase, and a right to end instead of paying it. |
| Term | A one-year renewal after a four-week pilot. | A renewal term no longer than the initial term, or opt-in renewal. |
| Client type | A B2B evergreen pasted onto a consumer subscription. | Auto-renewal for business retainerA retainer is an arrangement where a client pays a regular fee to secure a set amount of time or ongoing access to a supplier.More in the glossary; extra consumer rules left to consumer papers. |
Which contracts include it?
Lex includes this clause in, among others:
- Retainer agreement
- Services agreement (master services agreementA master services agreement (MSA) sets the legal terms for an ongoing relationship, with each project then agreed in a separate statement of work.More in the glossary)
- Consulting agreement
Draft a retainer agreement with this clause
Free for the other sideLex drafts it in Plain English beside the legal wording. Share one link; both sides agree and sign.
Frequently asked questions
What does an auto-renewal clause mean?
The contract rolls into a further term unless one side gives notice to stop it in time. The notice window, the renewal length and what happens to price are the three lines that matter.
How do we stop an auto-renewal?
Give written notice inside the window, in the form the notices clause requires. Miss the window and a further term begins. Put a diary date next to the end date.
How much notice is typical?
Thirty days before the end of a twelve-month retainer is a common commercial shape. The window should fit the term. Count calendar or business days, and say which.
Can the supplier raise the fee on renewal?
Only if the clause says so. Write how much notice is given and whether the client can end the contract instead of paying the new fee.
Do consumer subscriptions use the same clause?
No. Extra information and cancellation rules apply to consumer subscriptions. A business retainer on a services or consulting agreement is a different paper from a consumer rolling subscription.
Related
The legal wording governsLast reviewed 28 October 2026Pending lawyer review