Three Steps to Achieve Control Over Auto-Renewal Contracts

If you have ever signed a contract, you might have sometimes come across the line saying that the contract will get auto-renewed in 12 months if the supplier is not informed about cancellation. The duration to provide cancellation of a contract is sometimes 60 days but it could be different depending on the contractual terms and conditions. If a contract has an auto-renewal clause and the supplier is not informed on time, the contract will get auto-renewed for a new period.

Now, as a business entity, you need to stay in control of your supplier contracts. You don’t want to be trapped in a supplier contract just because you forgot to send a cancellation notice. So, you need to devise a plan that allows you to effectively implement contract management (kontraktstyring) for your supplier contracts. Here are three steps you can follow to gain control over a contract renewal.

• Always read the terms and conditions of the contract. As mentioned above, the duration for contract cancellation could be 60 days, 30 days or another period. For example, if the cancellation period is 90 days (3 months) and your contract is ending on September 30, 2021, you need to send a cancellation notice no later than June 30, 2021. Make sure you have been informed about the cancellation of all your contracts. This will prevent contract cancellation issues.

• Before you send a contract termination notice, you need to know who you have to send the notice to. Usually, this information would be mentioned in the contract. However, if it isn’t, call the supplier right away and obtain the needed information. Also, make sure you know how long it will take to process the cancellation request.

• Finally, you need to draft the contract cancellation letter. State the contract you want to cancel. Clearly mention that you don’t want to renew the contract but terminate it. You don’t need to mention the reason for contract termination. Always mention your contact information in the letter. Send the letter with registered mail or make sure to sign it digitally.

If you don’t want the hassle of implementing contract management manually, you can get excellent contract management software (værktøj til kontraktstyring) from Contractpedia.

Contractpedia provides advanced and robust contract management software solution for businesses of all sizes and sectors. The software has been developed by professional developers who have kept the needs of businesses in mind. With easy-to-use controls along with a smooth dashboard, you can control all your contracts from a single place.

About Contractpedia:

Contractpedia is a leading company providing high-quality contract management tools (it kontraktstyring) to businesses.

For more information, visit https://kontraktstyring.dk/

Original Source: https://bit.ly/2VIdneW