BREAKING DOWN 'Evergreen (Contract Provision)'
When two or more parties enter into a contract, one of the terms they sign off on is how long each party would be bound by the contract. The duration of contracts varies widely and all parties are required to fulfill their obligations for as long as the contract remains in force. However, some contracts have an automatic renewal clause or evergreen clause, which means if neither party terminates it on the expiry date, all parties will be held to abide by the contract policy for another similar duration