😎 Continuing our series:
Word of the Day in Contracts.

Today we break down a term that sounds harmless but works like a delayed-action trap.

Auto-renewal

🤝 In simple terms —
Forgot to notify the other party a month in advance? Congratulations, you've signed up for another year. The contract renews automatically.

It hurts🩸
Say you rent an office for a year at 100,000₽ per month. Suddenly you decide to move and find a new space. When signing, you briefly noted a clause: "The contract is automatically renewed if notice is not given 60 days before expiration."
You were two weeks late.
Result: you pay for the old office for another year
(1,200,000₽) while also renting the new one.

Yes, there is an option to terminate early, but only through court or with a penalty.
The longer the notice period, the easier it is to miss. Especially if the contract is for a year and you need to give notice three months in advance.


🔎In this case, our Legiscan:
Finds clauses with auto-renewal and shows specific notice periods. Warns if these periods are unreasonably long and recommends adding the possibility of early termination or shortening the notice period.

Better to know about the trap before signing. Check yours in the convenient bot @legiscan_bot, while the calendar is still on your side.