---
title: Contract Renewal: Definition and How to Renew Contracts | Aavenir
url: https://aavenir.com/glossary/contract-renewal/
description: Contract renewal is extending a contract for a new term, either automatically under an auto renewal clause or by a decision and new agreement before the.
updated: 2026-11-07
---

[Home](https://aavenir.com/) / [Resources](https://aavenir.com/resources/) / [Glossary](https://aavenir.com/glossary/) / Contract renewal Glossary

# What is contract renewal?

Contract renewal is extending a contract for a new term, either automatically under an auto renewal clause or by a decision and new agreement before the current term ends.

## Types of renewal

- **Automatic renewal.**The contract renews for another term unless one party gives notice by a set date.

- **Renewal by option.**One party may extend on notice.

- **Renegotiated renewal.**The parties agree new terms, often with new pricing.

## Why renewals go wrong

The notice date, not the end date, is what matters for an auto renewing contract, and it often falls weeks or months before the term ends. Miss it and the contract renews on old terms, sometimes with a price increase. The decision to renew should be based on how the supplier performed and what the contract cost, which means looking at obligations and invoices, not only the document.

## How Aavenir handles it

[Contractflow](https://aavenir.com/solutions/enterprise-contract-management-software/) tracks renewal and notice dates on every contract, opens a renewal decision well ahead of the notice window and shows performance and spend alongside it.

## Keep reading

[Contract termination Contract termination is ending a contract before or at the end of its term, under a right in the contract or. Read more](https://aavenir.com/glossary/contract-termination-lifecycle-management/)[Contract obligations Contract obligations are the duties each party agrees to perform under a contract, such as paying on time,. Read more](https://aavenir.com/glossary/contract-obligations/)[Contract addendum A contract addendum is a document added to an existing contract that adds new terms or detail, such as a new. Read more](https://aavenir.com/glossary/contract-addendum/)

Frequently asked questions (FAQ)

## Common questions

###

### What is an auto renewal clause?

A clause that renews the contract for another term unless a party gives notice by a set date. The notice date, not the end date, is the one to track, because missing it locks in another term. [See Contractflow](https://aavenir.com/solutions/enterprise-contract-management-software/).

###

### When should you start a contract renewal?

Before the notice date, not the end date. Leave time to review how the supplier performed, what the contract cost and whether the terms still fit, then negotiate or give notice. [Read about contract obligations](https://aavenir.com/glossary/contract-obligations/).

###

### What happens if you do not renew a contract?

It expires at the end of its term, and the parties close out what each still owes. If you want to end it early or stop an auto renewal, follow the termination and notice clauses. [Read about contract termination](https://aavenir.com/glossary/contract-termination-lifecycle-management/).

Have a question we have not answered? [Ask the Expert](https://aavenir.com/contact/)

Schedule a demo

## See your contracts run on one record.

- **1****A 30 minute walkthrough**Built around your team, whether that is procurement, legal, IT or finance.

- **2****Your contracts, not ours**Bring a few sample agreements and watch Aavenir AI extract and review them.

- **3****ServiceNow or standalone**We show the deployment that fits the systems you already run.

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