Notice period
A notice period is how far ahead of a contract's end you must tell the vendor you are leaving or changing terms, such as 30, 60 or 90 days.
Why it matters to a budget owner
The notice period turns an end date into a deadline. A contract that ends on 31 March with 60 days' notice has to be cancelled by 30 January. Miss that day and most auto-renewing contracts run for another full term.
Contracts also say how notice must be given: by email to a named address, through the vendor's portal, or in writing to a postal address. Notice sent the wrong way can be treated as no notice at all.
Example
A 12-month subscription ends on 30 June with 90 days' notice. The last day to give notice is 1 April.
What to record
- The number of days and whether they are calendar or business days
- How notice must be given and to whom
- Whether the period differs for cancelling and for changing seats
Frequently asked questions
Does the notice period count calendar days or business days?
Whatever the contract says. Most commercial contracts use calendar days unless they say otherwise; when in doubt, count calendar days and give notice early.
General working knowledge about commercial contracts, not legal advice. Your own agreement governs.
Glossary
Look up related terms
- Notice deadlineThe notice deadline is the last day you can give notice to stop or change a renewal: the end date minus the notice period.
- Auto-renewal clauseAn auto-renewal clause renews a contract for another term unless one side gives notice before a deadline.