Term (duration)

Definición

The term of a contract is its duration: when obligations begin and when the agreement ends, whether on a fixed date, after a set period, or on completion of the work. It often interacts with renewal and notice provisions that determine whether the contract continues automatically. A clear term avoids disputes about when performance and payment obligations start and stop.

Ejemplo

A maintenance contract runs for an initial term of two years and then renews annually unless either party gives notice.

Por qué es un riesgo para la empresa

Contracts that roll over automatically without active review lock businesses into commitments that no longer reflect market rates or operational needs. A portfolio of multi-year agreements with staggered end dates is easy to lose track of, and missing a notice window by even one day can mean another full year of obligations.

Cómo gestionarlo

• Log every contract end date and associated notice deadline when a contract is signed, not when it is about to expire.
• Set renewal review reminders well in advance (typically 90 days before the notice deadline) so you have time to evaluate and renegotiate.
• Clarify in the contract whether the term restarts from the original start date or from the last renewal date to avoid calendar disputes.