Auto-Renewal Clause
What it is
An auto-renewal clause automatically extends a contract for another full term — often a year — unless you actively cancel within a specified window. The window is usually 30 to 90 days before renewal and is easy to miss. By the time you realize the contract has renewed, you are already locked in.
Why it matters to you
The danger is not the renewal itself — it is the window. A 60-day or 90-day cancellation deadline means you need to decide months before the contract ends whether you want to continue. Miss it, and you owe another full term at the original rate, regardless of what has changed in your situation. The most aggressive versions have no notification obligation on the other side: they renew silently and your invoice is the first notice.
The aggressive version
This is auto-renewal language structured to favor the sender. The window is wide, there is no obligation to remind you, and renewal is automatic.
This Agreement shall automatically renew for successive one-year terms unless either party provides written notice of non-renewal at least ninety (90) days prior to the end of the then-current term. Failure to provide timely notice shall be deemed irrevocable consent to renewal for the full subsequent term. Client reserves the right to adjust fees upon renewal with thirty (30) days' written notice.
What each part does to you
“ninety (90) days prior”
You must decide three months before the contract ends. This is designed to be forgotten.
“irrevocable consent to renewal”
Missing the window is treated as a binding new agreement. You cannot exit once the deadline passes.
“adjust fees upon renewal with thirty (30) days' written notice”
They can raise the price at renewal and you are already locked in. Thirty days is not enough time to cancel.
The market standard version
A fair auto-renewal clause includes a short cancellation window, a reminder obligation, and no automatic price increases.
This Agreement shall renew annually unless either party provides written notice of non-renewal at least thirty (30) days before the end of the current term. Client shall send Contractor a written reminder no less than forty-five (45) days before the cancellation deadline. Any fee changes at renewal require mutual written agreement and shall be communicated with at least sixty (60) days' notice.
Your counter-language
This version gives you control over the renewal decision and protects you from automatic price increases.
This Agreement may be renewed for additional one-year terms by mutual written agreement of both parties. Renewal requires affirmative written consent from both parties no later than thirty (30) days before the end of the current term. No automatic renewal occurs. Either party may decline renewal without cause. Any change to fees requires separate written agreement.
What to ask for
“Can we replace automatic renewal with affirmative renewal — both sides need to agree in writing to continue?”
“If automatic renewal stays, can we shorten the cancellation window to 30 days and add a reminder obligation before the deadline?”
“Can we require that any fee changes at renewal be agreed to in writing rather than imposed unilaterally?”
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ClauseCheck is not a law firm and does not provide legal advice. The clause examples and counter-language on this page are illustrative only and are not a substitute for advice from a qualified attorney. Contract terms vary by context; consult a lawyer before making decisions on any specific agreement.
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