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Understanding the Evergreen Clause: Benefits and Perils


Gain an understanding of important drafting considerations when including evergreen clauses in your contracts.

An important provision in contracts that contemplate ongoing performance by one or both parties is the contract term. In many cases the term provision is given short shrift or even ignored all together, leaving the parties unclear how long performance is to continue and when, if ever, the contract may be terminated. In other cases, without much consideration, parties agree to auto-renewal or evergreen clauses that automatically extend the contract term absent some action by one of the parties to prevent the renewal. This material considers the fundamentals of drafting evergreen clauses in contracts. You will obtain an understanding of the legal principles applicable to the term of a contract, including contracts with definite terms, indefinite terms, and contracts with evergreen clauses. You will also receive an overview of important drafting considerations when including evergreen clauses and how to ensure that your contract is clear and enforceable. Certain state law considerations, relating to the application of such clauses in the context of business, consumer and other types of contracting are addressed.



Richard Moorhouse

Richard Moorhouse

Greenberg Traurig, LLP

  • Shareholder with Greenberg Traurig, LLP
  • More than 30 years of experience litigating procurement award and contract disputes at the federal, state, and local level
  • Practice also frequently involves the conduct of internal investigations, the preparation of comprehensive submissions to clients detailing the results of those investigations, and disclosures to the government in a variety of matters including those giving rise to potential debarments, suspensions, and other determinations of ineligibility to receive contract awards
  • Retained as an expert witness in complex civil litigation involving federal government contract issues
  • Achieved the highest rating with Martindale-Hubbell® Law Directory
  • J.D. and M.A. degrees, Suffolk University Law School; B.A. degree, University of Massachusetts at Amherst
  • Can be contacted at 703-749-1304 or [email protected]

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