Evergreen contract
An evergreen contract is an agreement that automatically renews at the end of each term unless one party gives notice to terminate.
An evergreen contract continues indefinitely by automatically renewing at the end of each period. It reduces administrative overhead around renewals but requires both parties to actively monitor and manage cancellation windows.
Example: A SaaS company's standard subscription agreement is an evergreen contract that renews annually unless the customer provides 30 days written notice before the renewal date. This structure reduces churn from passive customers who forget to cancel.
