A/An _____ clause assumes the contract will be renewed every year unless the supplier is otherwise notified that this is not the case.
A)evergreen
B)due diligence
C)penalty
D)escape
E)None of these answers.

Question

Quizplus · Accepted Answer

An evergreen clause is a provision in a contract that automatically renews the agreement at the end of each period unless one of the parties gives notice to terminate or modify the contract. Therefore, an evergreen clause assumes that the contract will be renewed every year unless the supplier is otherwise notified not to renew it.

A/An _____ Clause Assumes the Contract Will Be Renewed Every