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Contract period; automatically renewed for another five-year periods at the expiration means what?

English Language & Usage Asked on July 28, 2021

My contract is valid for five years and may be automatically renewed for another five-year period at the expiration unless one party gives the other a six-month period notice.

Is it valid for 10 years if there isn’t any notification?
Or renewed every 5 years terms?

One Answer

It means exactly what it says, it is a five year contract. That means ends in five years' time.

At the end of the five year period it will be renewed automatically (that means that a new five-year period will start then) unless either you or the other party tells the other that they don't want to renew. The contract terms will probably be the same and you probably won't have to sign a new document (because it will be renewed automatically) but it will be a new contract term.

The only case in which the contract won't be renewed will be if you or the other 'party to the contract' gives written notice that they want the contract to end at the end of the five year period but this notice must be received no later than six months from the end of the contract.

For example if you took the contract out on the 10th of November this year it will end on the 9th of November 2025 but a new contract period will start on the 10th of November 2025. You or the person or organisation issuing the contract can stop that happening but only by sending written notification that they don't want to renew by the 10th of May 2025.

The only thing that isn't clear is whether or not the contract will renew automatically again in 2030.

Answered by BoldBen on July 28, 2021

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