# Term (duration)

Source: https://contracko.com/glossary/term

# Term (duration)

The period during which a contract is in force, from start date to expiry.

## Definition

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.

## Example

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

## Why this is a business risk

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.

## How to manage it

- 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.

### How Contracko helps

Contracko is built around the contract term lifecycle. It extracts start dates, end dates, and notice windows from every contract and fires smart reminders to the right colleagues ahead of each deadline, so nothing renews by accident and every exit window is actioned in time.

## Relevant for

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

## Related clauses

- [Renewal and Notice Period Clause](https://contracko.com/clause-library/renewal-and-notice)
- [Termination for Convenience Clause](https://contracko.com/clause-library/termination-for-convenience)
- [Payment Terms Clause](https://contracko.com/clause-library/payment-terms)

## Related terms

- [Auto-renewal](https://contracko.com/glossary/auto-renewal)
- [Notice period](https://contracko.com/glossary/notice-period)
- [Termination](https://contracko.com/glossary/termination)

### Never miss a contract deadline again

- AI finds renewal and notice dates
- Risks and obligations are surfaced automatically
- Reminders help you act before dates slip

Drop a contract to start

PDF, DOCX, PNG, or JPG

[Start 7-day trial](https://app.contracko.com/register?appLanguage=en&utm_source=glossary_sidebar&utm_medium=lead_magnet&utm_campaign=glossary_sidebar_contract_upload&content_slug=term&content_title=Term+%28duration%29&cta_placement=glossary_sidebar_cta&source_tool=glossary_sidebar_term)

GDPR compliant. Encrypted. Never used for AI training.

## Frequently asked questions

Common questions about this term.

- **Q:** What happens when a fixed term expires?
  **A:** The contract ends unless a renewal clause extends it. If parties keep performing afterwards, a new contract may arise by conduct, often on the prior terms.

- **Q:** Can a term run indefinitely?
  **A:** Yes. Evergreen contracts have no fixed end date and continue until notice is given. Under Dutch law some contracts of indefinite duration (e.g. certain distribution agreements) may be terminable at reasonable notice even without a termination clause.

- **Q:** When does the term start: signature date or a later commencement date?
  **A:** Whichever the contract specifies. It is common to use a commencement date separate from the signature date (e.g. the go-live of a system). If the contract is silent, the term generally starts on the date of last signature.

- **Q:** What obligations survive after the term ends?
  **A:** Typically confidentiality, accrued payment obligations, IP ownership, and dispute resolution. Contracts should list surviving provisions explicitly, otherwise parties may dispute what continues.

- **Q:** Is a contract automatically extended if both parties keep performing after the end date?
  **A:** Under Dutch law it may be: continued performance after expiry can create a new contract by conduct, often on the same terms. To avoid unintended extensions, include a clause stating that performance after expiry does not constitute renewal.

## See these terms in your own contracts

Upload a contract and Contracko pulls out the key terms, dates and obligations, then reminds you before each one matters.

[Start 7-day free trial](https://app.contracko.com/register?appLanguage=en)

Book demo