What it is
An auto-renewal clause renews the contract for another full term unless you give notice by a specific deadline (often 30–90 days before expiration). Several states (CA, NY, OR) require special opt-out disclosures.
Why it matters
Miss the notice and you owe another year. Pricing on renewal is often unilateral — the vendor sets the new rate.
Sample clause language
"This Agreement shall automatically renew for successive 12-month terms unless either party provides written notice of non-renewal at least 90 days prior to the end of the then-current term."
What it really means: 90 days is a long window. Calendar it the moment you sign — and request the renewal price in writing 60 days before.
Red flags
- Notice window > 60 days
- No cap on price increases at renewal
- Multi-year auto-renewal terms
- No required reminder from the vendor
Fair / acceptable
- 30-day notice window
- Renewal price tied to CPI or capped %
- Vendor must send written reminder
- Month-to-month rollover after first term
How to negotiate
- Convert to month-to-month after initial term
- Cap renewal increases
- Require written reminder 60 days before deadline
Frequently asked questions
Decode this clause in your contract
Upload your contract and we'll flag this and every other risky clause — in plain English, in seconds.
Related clauses
Not legal advice. For informational purposes only.