Beware auto-renewal of B2B contracts
In the world of B2B contracts, overlooking an auto-renewal clause can become an expensive mistake—especially when a service is no longer needed or a new provider is already in place.
Peter Kouwenberg, Partner in our Corporate and Commercial department, dives into the responsibilities of suppliers, the risks to buyers, and the key steps your business should take to avoid being locked into unwanted agreements in his new article which has been published in various publications.
“Businesses buying services from suppliers need to consider whether these contracts will be automatically renewed, which can be an expensive mistake when they are no longer needed or when a new provider has been appointed.
What is the responsibility of the supplier to warn the customer of an auto-renew clause, and can the customer exit these agreements easily if it fails to notice it?
Whilst contracts between a business and a consumer provide the customer with some level of statutory protection, B2B customers are relatively exposed. It is therefore particularly important to understand what your business is being asked to sign up for and to challenge terms you are not happy with before the agreement is entered into…”
To read Peter’s full article, visit the link here: https://city-news.co.uk/2025/04/11/beware-auto-renewal-of-b2b-contracts/
Disclaimer: General Information Provided Only
Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice. We cannot be held responsible for any loss resulting from actions or inactions taken based on this article.
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