auto-renewal
Definition
Auto-renewal is a contract feature that automatically extends your agreement for another term when the current period ends, unless you actively cancel it beforehand. The contract usually requires you to give written notice within a specific window of time before the renewal date if you want to opt out.
Example
You sign a one-year software subscription and forget about it, then get charged for another full year because you missed the 30-day cancellation window before the contract renewed itself.
Watch Out
These clauses can lock you into another full term and make it very difficult to get a refund, so always calendar the cancellation deadline the moment you sign any contract with an auto-renewal provision.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.