Evergreen Contract Law and Legal Definition

Evergreen contract is a contract that is renewed automatically or by notice from year to year until canceled by the either party. The renewal can be after completion of the act or maturity. The renewal continues till cancellation. An evergreen clause can be entered in a contract by stating that the contract automatically renews on a given day each year if neither side provides notice. For Example, a health care contract is renewed automatically for the term of the contract unless it is renegotiated.