Our company has been held hostage since 2001 in a car renewal contract with a waste treatment company……………. Yes, 18 years old! Meanwhile, our rate has increased by 10% a year, which allows you to imagine how much it became at that time. Phone calls to them to discuss some sort of price drop were filled with a quick reminder that they are working under contract terms and NO, there is nothing that can/will be done. The car extension clause locks us in 3 years, and with employee turnover in accounting, we couldn`t “catch” the small window of time to terminate the contract. And as you mentioned, they require that cancellation notices be sent to the company`s letterhead, by certified mail, between 60-120 before the end of the validity period. Finally, we were able to submit the cancellation notice according to all the rules it dictates and our time with them is coming to an end. Now, of course, they offer all kinds of discounts, promotions and incentives to entice us to stay. Unfortunately, this experience has left such a bitter taste in our mouth that we are no longer ready to work with them under any circumstances. But my question is that…………… Is there anything illegal about what they have done — to automatically renew us for 18 years? Was there anything else we could have done? A run-off rental period is structured so that it is automatically extended at the end of the validity period. It is then relocated to another term with a similar period or activated from month to month. For example, a tenant who signs a permanent lease with the landlord must reside in the property for one year, after which the contract becomes a monthly indeterminate residence agreement.
During the monthly automatic renewal period, both parties can break the agreement. A growing presence in contractual transactions is the automatic extension clause known as the Evergreen Clause. Die Evergreen-Klausel erm-glicht die Fortsetzung einer Vereinbarung fer einen bestimmten Zeitraum, wenn die bestehende Vereinbarung nicht innerhalb einer bestimmten Frist neu ausgehandelt oder ordnungsgem-gek-ndigt wird. Evergreen`s clauses are found in both consumer and commercial contracts, including rental housing, advertising contracts, gym memberships and many other service-based contracts. Die Frage ist, ob Evergreen-Klauseln durchetzsbar sind, da sie dazu fàhren, dass ein Vertragspartner automatisch an eine Vereinbarung `ber die urspr-ngliche Vertragslaufzeit hinaus gebunden wird. As a general rule, an Evergreen clause in a contract takes the following form: The contract is also terminated if one of the parties informs the other party of its intention to terminate the contractual relationship within the pre-announcement period described in the terms of the contract. [34] In general, this declaration of intent is presented some time before the expiry of the contract: “This agreement is automatically renewed for an additional (1) year, unless one of the parties announces its intention to terminate this contract at least thirty (30) days before the expiry of the contract.” or for a number of days before the expiry of the contract: “This agreement is automatically extended by one (1) year if one of the parties informs the other party of its intention to terminate the contract within thirty (30) days from the end of each period.” The Memorandum of Understanding may be issued at any time before the number of days indicated in the first case, while in the second case it must be issued within the time limit of highlighting the number of days.