non-renewal
Definition
Non-renewal is a decision by either party in a contract to let an agreement expire naturally at the end of its term rather than extending it for another period. Unlike termination, which ends a contract early, non-renewal simply means you are choosing not to start a new contract cycle when the current one runs out. Most contracts require one party to give written notice within a specific window of time before the expiration date if they plan to let it expire.
Example
Your commercial lease runs through December 31st, and your landlord sends you a letter in October saying they will not be renewing your lease for next year, giving you time to find a new space.
Watch Out
Many contracts automatically renew if you miss the notice deadline, so mark your calendar well before that window opens to avoid being locked into another term you did not want.
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.