Is tacit renewal allowed in the Netherlands?

For B2B contracts generally yes; for consumers the Wet Van Dam limits it, often allowing monthly cancellation after the initial term.

What happens if I miss the notice deadline?

In a B2B auto-renewal clause the contract usually renews for the full further term; track the deadline carefully.

How far in advance should a renewal notice deadline be set?

It depends on procurement and budget cycles. Three months is common for annual B2B contracts; longer terms or significant switching costs typically justify a longer notice window.

Can a contract renew for a different term than the initial term?

Yes, if the clause says so. For example, a three-year initial term can renew for successive one-year periods, which is often a compromise between supplier certainty and customer flexibility.

Is the notice requirement the same for both parties?

Only if the clause is mutual. In some agreements only one side bears the notice obligation; review the clause carefully to confirm who must act and by when.

Renewal and Notice Period Clause

Sets the contract term, whether it auto-renews, and the notice required to prevent renewal.

What it is

This clause fixes the initial term and what happens at its end: automatic renewal for a further period unless notice is given, or expiry. It governs the notice period and the deadline by which a party must act to avoid being locked into another term.

Why it matters

Auto-renewal (stilzwijgende verlenging) and a missed notice deadline can silently extend an unwanted contract for a year or more. Dutch consumer law restricts tacit renewal; in B2B, the clause itself controls, so the dates matter enormously.

How to apply it

State the initial term, the renewal length and the exact notice deadline.
Choose between auto-renewal and expiry; for consumers, observe the Wet Van Dam limits.
Require notice in writing and confirm how it is validly delivered.
Set a calendar reminder process internally so renewal deadlines are not missed.

Sample wording

This Agreement has an initial term of twelve (12) months and renews automatically for successive twelve-month periods unless either party gives written notice of non-renewal at least three (3) months before the end of the then-current term.

Negotiation tips

• Customers should shorten the notice period and renewal length, or switch to month-to-month.
• Suppliers favour longer renewal terms; offer a discount in exchange for commitment.

Common pitfalls

• Long notice periods combined with auto-renewal that trap a party for another full term.
• Ignoring consumer auto-renewal limits (Wet Van Dam) in B2C contracts.

Legal references

Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.

Frequently asked questions

Common questions about this clause.