Automatic renewal clauses, or "evergreen clauses," are
a frequent occurrence in contracts of all kinds and are becoming
increasingly prevalent as businesses transition from traditional
methods of selling products and services to various
"as-a-Service" (i.e., SaaS, PaaS, IaaS) and
subscription-based business models. These types of clauses
typically state that the contract automatically renews if the
customer does not provide notice of termination prior to the
renewal. In the typical case, a year or more goes by after the
customer signs the contract, the service goes downhill, the
customer misses the termination deadline, and then they are stuck
with a vendor or service they don't want or need.
