This clause automatically extends your contract for another term (often a year) unless you actively notify the other party before a deadline—sometimes 30 or 60 days before expiry. Many people forget to cancel and suddenly find themselves locked in for another year. In the UK and US, courts have increasingly required companies to make cancellation "easy and obvious," but the burden is still on you to remember the deadline. This matters because you could be paying for services you no longer want, and the company keeps the money.
Always ask to change the deadline to at least 90 days' notice, and request written confirmation that your cancellation was received. Better yet, try to remove auto-renewal entirely and require both parties to actively agree to extend. Set a phone reminder for 120 days before expiry as backup. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause automatically extends your contract for another term (often a year) unless you actively notify the other party before a deadline—sometimes 30 or 60 days before expiry.
Why should I care about this clause?
Many people forget to cancel and suddenly find themselves locked in for another year.
What are my options?
In the UK and US, courts have increasingly required companies to make cancellation "easy and obvious," but the burden is still on you to remember the deadline.
How does this affect small businesses?
This matters because you could be paying for services you no longer want, and the company keeps the money.