what is an evergreen contract 
an evergreen contract automatically renews on or after the expiry date the parties involved in the contract agree that it rolls over automatically until one gives the notice to terminate it evergreen contracts are used for a number of different purposes including rental leases purchasing contracts and service agreements understanding evergreen contractsone of the details the parties sign off on in a contract is the term or the length of time the contract will remain in force the contract duration varies widely and all parties are required to fulfill their obligations for as long as the contract outlines if neither party terminates it on the expiry date they are all bound to abide by the contract policy for another similar duration most evergreen contracts come with a 60 to 90 day renewal period before it renews evergreen clauses can be used in different kinds of contracts including employee stock option schemes dividend reinvestment plans drips rental lease agreements guaranteed investment certificate gic healthcare plans insurance coverage policies magazines subscriptions and revolving loans 