Automatic renewal clause of commercial contract when it expires

The dissolution of a contract can be divided into legal dissolution, agreed dissolution and conditional dissolution. However, when signing a contract, in order to maintain a long-term cooperative relationship, both parties to the contract can agree to automatically renew the contract, that is, the contract will remain valid after the expiration of the specified time. So, how to terminate the automatic renewal clause of a commercial contract? Bian Xiao will explain it to you.

First, how to terminate the automatic renewal clause of commercial contracts?

1. Before the expiration of the contract period agreed by both parties, a notification letter or email that the contract will not be renewed after the expiration can be submitted in writing according to the contract agreement. However, it should be noted that the letter must be sent in the name of the company, and it is best to affix the company seal; If it is mailed, it must be the designated mailbox agreed by both parties in the contract or the mailbox that is docked during the business intersection between the two parties.

2. Generally speaking, the automatic renewal agreement is a legal act that the two parties to the contract reach an agreement through consultation and continue to sign a contract with the same or different contents as the original contract. It is usually expressed as: "If neither party proposes to terminate this contract in writing within 30 days before the expiration, this contract will be automatically renewed for one year at a time until one party proposes to terminate it in writing or both parties re-sign a cooperation contract for the same type of business."

II. Relevant laws and regulations

Article 562 of the Civil Code of People's Republic of China (PRC), the parties may terminate the contract through consultation. The parties may agree on the reasons for one party to terminate the contract. When the reasons for the termination of the contract arise, the creditor may terminate the contract.

From the above explanation, it can be seen that the automatic renewal clause agreed in the business contract can not only continue to cooperate, but both parties must pay attention to the termination method of the contract and the renewal period of the renewal when signing the contract, so as to facilitate the subsequent emergency treatment. If you have any other questions, please consult in detail.