4.1
Term and exit
Medium risk
Auto-renewal
Contracts that renew themselves unless someone remembers to cancel in time.
What this clause does
Auto-renewal keeps a contract running after its term unless someone sends notice in time. The notice window is often buried, and missing it can lock in another year at a higher price.
What Rubrel flags
Rubrel extracts the renewal length, the notice period and any price-increase language. It flags renewals longer than 12 months, notice windows over 60 days, and price rises that are not capped.
How the redline usually lands
Rubrel proposes a 30-day cancellation window and a 5% cap on renewal increases, and adds the renewal date to your contract calendar so nobody has to remember it.
Playbook positions
Standard position
No auto-renewal, or renewal only after 60 days’ written notice to us before the term ends.
Fallback
Auto-renew for 12 months, with a 30-day cancellation window and price rises capped at 5%.
Walk-away point