1。Autorenewal contracts continue without action by either party and automatically renew for the renewal period specified within the contract.
These contracts contain automatic renewal clauses—commonly called “evergreen” clauses.
This puts a duty on the customer to end the contractual relationship if they want it to end. Otherwise, the contract will automatically continue into the next renewal period.
2。Autorenewal contracts are legal and can be enforced in court.
Courts also typically enforce these provisions when one business did not cancel the autorenewal within the specified period. If clear contract language is used, and one business fails to follow that language, the agreement will likely be enforced.
3。What is the automatic renewal clause in Ontario?
Evergreen Clauses: "Each Term shall automatically renew for subsequent period of the same length as the initial Term unless either party gives the other written notice of termination at least (30) days prior to expiration of the current term."
4。How do I cancel automatic renewal?
You can get out of an auto-renewal contract by serving a written notice to the other contracting party to inform them of your decision not to renew your existing contract. This must be before by the automatic renewal date and within the notice period outlined within the renewal clause.