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Contract Glossary

Renewal

Definition

A renewal clause extends your contract beyond its original end date. Auto-renewal means it renews automatically unless someone says 'stop' within the notice window. Miss that window and you're locked in for another term.

In Practice

Your SaaS contract auto-renews annually with a 60-day notice requirement. The contract ends December 31. To cancel, you need to send written notice by November 1. You forget. On January 1, you're committed for another full year at $3,600/month, $43,200 you didn't plan to spend. Calendar reminders aren't optional; they're financial protection.

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This content is for informational purposes only and does not constitute legal advice.