Understanding the Evergreen Clause: Benefits and Perils (OnDemand Webinar)

$199.00

SKU: 407483EAU

Description

Gain an understanding of important drafting considerations when including evergreen clauses in your contracts.
An important provision in contracts that contemplate ongoing performance by one or both parties is the contract term. In many cases the term provision is given short shrift or even ignored altogether, leaving the parties unclear how long performance is to continue and when, if ever, the contract may be terminated. In other cases, without much consideration, parties agree to autorenewal or evergreen clauses that automatically extend the contract term absent some action by one of the parties to prevent the renewal. This material considers the fundamentals of drafting evergreen clauses in contracts. You will obtain an understanding of the legal principles applicable to the term of a contract, including contracts with definite terms, indefinite terms, and contracts with evergreen clauses. You will also receive an overview of important drafting considerations when including evergreen clauses and how to ensure that your contract is clear and enforceable. Certain state law considerations, relating to the application of such clauses in the context of business, consumer and other types of contracting are addressed.

Date: 2021-06-29 Start Time: End Time:

Learning Objectives

Automatic Renewal or Rollover and Evergreen Clauses
• Similarities – Affirmative Action to Terminate
• Differences – Defined New Term vs. Continuous Renewal
• Examples of Clause Language
• Not Perpetual – Can Be Terminated

Types of Contracts and Agreements
• Leases of Real Property
• Leases of Personal Property
• Service Agreements
• Insurance Policies

Benefits for the Purchaser
• Guarantee of Supply and Service
• Pricing Consistency – Maybe

Benefits for the Seller
• Regular Customer
• Continuing Revenue Stream
• Avoidance of Competition
• Reduction of Marketing Expense

Pitfalls and Perils
• Termination Within a Specified Period of Time
• Termination Outside a Specified Period of Time

Escape Hatches
• Termination by Mutual Agreement
• Termination by Reasonable Notice Outside the Clause
• Renegotiation

Enforceability
• A Look at Past Law
• Current Legal Trends

Consumer Protection and Other Statutes
• Clear and Conspicuous Language
• Advance Notice
• Forfeiture
• Reasonable – a Look at Some State Statutes
• Draconian – a Look at Some Other State Statutes

CLE (Please check the Detailed Credit Information page for states that have already been approved) ,ISM ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Richard Moorhouse-Greenberg Traurig, LLP