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Glossary

Evergreen contract

An evergreen contract has no end date. It runs until one side ends it, usually by giving notice.

Why it matters to a budget owner

Evergreen agreements are common for cloud infrastructure, master agreements and many service contracts. No end date is correct for them, not missing data.

Because nothing expires, the question is not when it renews but how you get out: the notice period and any charge for leaving.

What to record

  • The start date
  • The termination notice period
  • Any minimum term before you can leave

Frequently asked questions

Is an evergreen contract the same as an auto-renewing one?

Not quite. An auto-renewing contract has terms that repeat; an evergreen contract has no term at all and simply continues until ended.

General working knowledge about commercial contracts, not legal advice. Your own agreement governs.

Glossary

Look up related terms

  • Fixed-term contractA fixed-term contract runs for a set period, such as one or three years, and ends or renews when that period is over.
  • Rolling contractA rolling contract renews itself in periods, often month to month or year to year, until one side gives notice.
  • Termination for convenienceTermination for convenience lets one side end a contract without the other being at fault, usually with notice and sometimes a fee.