contract year
Definition
A contract year is the 12-month period defined in your agreement during which the terms of that contract apply, and it may or may not line up with the regular January-to-December calendar year. Many businesses set contract years to match their fiscal year or the anniversary date of when they signed the agreement.
Example
If you sign a vendor agreement on March 1st, your contract year might run from March 1st through the last day of February, meaning renewal deadlines and annual pricing reviews follow that schedule rather than the end of December.
Watch Out
Missing your contract year's renewal or termination deadline can automatically lock you into another full year with a vendor or service provider, so mark that date on your calendar the moment you sign.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.