Business contracts that automatically renew are sometimes called evergreen contracts. These types of contracts are common in situations where a recurring service is being provided, such as landcaping services or equipment maintenance and repair. Once the contract is signed and the proper accounts are set up, no further action is required to ensure that the duties under the contract are performed. However, a situation might arise when you need to terminate an automatically renewed contract, such as when you move your business to another city. When this happens, there are certain steps you can take to make the process simple and efficient.

Read the contract terms. The contract should specify when the contract automatically renews and the process for termination. Make sure you provide adequate notice to meet the terms of the contract.

Draft a termination letter. The letter must clearly describe the contract in question, the effective date of termination and how the performance of any clauses that may go beyond the contract term should be handled.

Mail the termination letter via certified mail and get a return receipt. A return receipt will verify that the termination letter was sent within the proper time frame to prevent the contract from renewing.

Pay any fees that might be required according to the terms of the contract and perform any duties that must be completed.