header-logo header-logo

Auto-renewing contracts: stuck in the middle

12 September 2019 / Rob Jones , Jenny Young , Matthew Fox
Issue: 7855 / Categories: Features , Commercial
printer mail-detail

Rob Jones, Jenny Young & Matthew Fox report on the dangers of auto-renewing contracts for medium & large businesses

  • The traps presented by auto-renewing contracts, and how to avoid them.

Auto-renewing contracts—otherwise known as rolling contracts—are contracts which automatically renew after an initial fixed period. The exact terms will vary from contract to contract. Typically, they state that if notice to terminate is not given in a specified period of time, and in a particular way, then the contract will automatically renew.

As a result, if the signing party fails to hand in their notice in line with the terms of the contract, they may find that they have unintentionally entered into a renewed contract even though they did not provide their explicit consent.

Some consider these types of contracts to be convenient as they enable services to continue uninterrupted without the need to renew. However, for others who want to switch to a cheaper or better provider, it will be an unpleasant surprise to discover that they are

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
The Court of Protection has ruled in Macpherson v Sunderland City Council that capacity must be presumed unless clearly rebutted. In this week's NLJ, Sam Karim KC and Sophie Hurst of Kings Chambers dissect the judgment and set out practical guidance for advisers faced with issues relating to retrospective capacity and/or assessments without an examination
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
back-to-top-scroll