How to Handle Contract Renewal
Handle contract renewal by reviewing the existing terms well before expiry, checking for auto-renewal clauses and notice deadlines, deciding whether to renew on the same terms, renegotiate, or let the contract expire, and documenting the outcome.
Last updated: February 2025
Step-by-Step Guide
Set up renewal reminders
Diarise the contract expiry date and any notice deadlines well in advance, ideally three to six months before expiry.
- •Use contract management software or calendar reminders.
Review the current contract terms
Assess whether the existing terms still meet your needs, whether pricing is competitive, and whether any issues have arisen during the current term.
- •Gather feedback from stakeholders who work with the contract day-to-day.
Decide your approach
Choose whether to renew on the same terms, renegotiate specific provisions, or let the contract expire and seek an alternative supplier or arrangement.
- •Use the renewal as an opportunity to improve unfavourable terms.
Document the renewal or non-renewal
If renewing, sign a renewal letter or new contract. If not renewing, give notice in the required form and timeframe to prevent auto-renewal.
- •Confirm non-renewal in writing even if verbal notice was given.
Legal Requirements
Auto-renewal clauses are generally enforceable in B2B contracts but may be challenged as unfair in consumer contracts under the Consumer Rights Act 2015. Notice of non-renewal must be given strictly in accordance with the contract terms. Failure to give timely notice may result in automatic renewal for another full term.
Common Mistakes
Template / Example
When to Get a Solicitor
If the contract is high-value, if you want to renegotiate significantly, or if the auto-renewal clause has locked you in and you want to explore options.
FAQ
Are auto-renewal clauses enforceable in the UK?
Yes, in B2B contracts auto-renewal clauses are generally enforceable. In consumer contracts, they may be challenged as unfair under the Consumer Rights Act 2015, particularly if the consumer is not given adequate notice before renewal.
How much notice should I give before a contract renewal?
Check the contract for the specific notice period required. If none is stated, give reasonable notice. Many contracts require 30-90 days' notice of non-renewal before the expiry date.
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