Automatic Renewal Clause
An automatic renewal clause allows a contract to renew itself for a specified period without the need for either party to take action, unless one party opts out by providing notice before the renewal date.
Examples of automatic renewal clauses
A software subscription may include an automatic renewal clause that renews the subscription annually unless the customer cancels at least 30 days before the end of the current term.
In a leasing agreement, if the tenant does not notify the landlord about vacating the property, the contract might automatically renew for another year under the same terms.
