# Renewal and Notice Period Clause

Source: https://contracko.com/clause-library/renewal-and-notice

# 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.

### How Contracko helps

Renewal and notice deadlines are exactly the kind of obligation Contracko is built to catch. It tracks every contract's end date, auto-renewal trigger and notice deadline, and sends calendar-integrated reminders to the right colleagues well in advance, so unwanted renewals are stopped and wanted ones are confirmed on time. The central repository also lets you run a portfolio-wide report on upcoming renewal dates in seconds.

## Legal references

- [BW 6:248 Reasonableness and fairness Dutch law](https://wetten.overheid.nl/BWBR0005289)
- [BW 6:236 Tacit renewal of consumer contracts (Wet Van Dam) Dutch law](https://wetten.overheid.nl/BWBR0005289)

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.

## Relevant for

[Software & SaaS](https://contracko.com/industries/software-saas)[B2B SaaS Companies](https://contracko.com/industries/b2b-saas)[Telecommunications](https://contracko.com/industries/telecommunications)[Managed Service Providers](https://contracko.com/industries/managed-service-providers)[Insurance](https://contracko.com/industries/insurance)

## Related clauses

- [Termination for Convenience Clause](https://contracko.com/clause-library/termination-for-convenience)
- [Price Indexation Clause](https://contracko.com/clause-library/price-indexation)
- [Notices Clause](https://contracko.com/clause-library/notices)

## Related terms

- [Auto-renewal](https://contracko.com/glossary/auto-renewal)
- [Notice period](https://contracko.com/glossary/notice-period)
- [Term (duration)](https://contracko.com/glossary/term)

### Never miss a contract deadline again

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## Frequently asked questions

Common questions about this clause.

- **Q:** Is tacit renewal allowed in the Netherlands?
  **A:** For B2B contracts generally yes; for consumers the Wet Van Dam limits it, often allowing monthly cancellation after the initial term.

- **Q:** What happens if I miss the notice deadline?
  **A:** In a B2B auto-renewal clause the contract usually renews for the full further term; track the deadline carefully.

- **Q:** How far in advance should a renewal notice deadline be set?
  **A:** 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.

- **Q:** Can a contract renew for a different term than the initial term?
  **A:** 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.

- **Q:** Is the notice requirement the same for both parties?
  **A:** 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.

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