What Is The Difference Between an Evergreen Contract and an Auto Renewal Contract?


An evergreen contract is a type of contract that allows for the same terms and conditions to be applied year after year, without any changes. This makes it ideal for businesses that want stability when doing business with a certain partner or customer. Auto renewal contracts, on the other hand, are typically shorter-term contracts where an agreement is automatically renewed unless either party notifies the other in advance about why it won’t be renewing.

Depending on your needs, one might be better than the other. For example, if you only need to contact someone once per year to remind them about their contractual obligations, then an auto renewal may suffice. On the other hand, if you need more frequent updates or notifications from your supplier/partner, then an evergreen would likely work best. It’s also important to remember that both options have their own benefits and drawbacks – so make sure to review each one carefully before making a decision!

The main difference between these contracts is that an evergreen contract allows for more flexibility and customization for both parties involved. If you’re not happy with your current service level or product offerings, it’s easier to switch providers without penalty than with a fixed-term auto renewal contract.

Leave an answer