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Track renewal deadlines for auto-renew contracts

Updated over 3 weeks ago

This article explains how to manage renewals for executed contracts that include auto-renewal clauses.


Requirements

  • Module: Contract Management

  • Eligible users: All users in a contracted tenant

  • Access rights:

    • Administrator

    • Editor

    • Contributor

    • Viewer

Only administrators and editors can manage renewal deadlines.


What Is Renewal Rejection?

For contracts with auto-renewal clauses, it is often required to notify the counterparty a certain period before the contract end date if you do not wish to renew.
This notice is called a renewal rejection.


Check Contract Status

Contract status can be checked under [Contract information] → [Contract period] → [Contract status].
Status changes automatically based on entered dates and values.

Contract status

Description

Active

Applied when [Auto-renewal status] is set to [Enabled].

Active - terminated

Applied when:

  • [Auto-renewal status] is [Disabled] or [Terminated], AND

  • The [Expiration date] has not yet passed.

Inactive

Applied when:

  • [Auto-renewal status] is [Disabled] or [Terminated], AND

  • The [Expiration date] has passed or is blank.

⚠️ Notes

Contract status cannot be edited manually.


Manage Renewal Deadlines

1. Set Auto-Renewal to “Yes”

LegalOn automatically detects auto-renewal when a contract is uploaded.
If incorrect, manually set [Auto-renewal] = Yes from the [Basic information] tab.


2. Enter Contract Period Information

Enter the following five items and click [Save]:

  • Signing date

  • Effective date

  • Initial term (or Initial term end date) (*)

  • Renewed term

  • Non-renewal notice period

(*) If one is entered, the other is auto-calculated and cannot be edited.

  • The Non-renewal notice deadline will be calculated automatically.

  • If [Auto-renewal status] is set to [Enabled], the next deadline will also be updated automatically after each cycle.


3. Identify Contracts with Approaching Deadlines


4. Update [Action status] Before the Deadline

When a deadline approaches, update [Auto-renewal status] in the [Basic information] tab:

Option

Use case

Enabled

To proceed with renewal.

Disabled (*)

To notify the counterparty that the contract will not be renewed.

Terminated (*)

To record mid-term termination.

(*) If selected, auto-calculation of [Non-renewal notice deadline] stops, and [Expiration date] becomes editable.


FAQ

Q. Why is the [Non-renewal notice deadline] not showing?
A. One or more of the required fields may be missing. Make sure all five items are entered:

  • Signing date

  • Effective date

  • Initial term (or Initial term end date)

  • Renewed term

  • Non-renewal notice period


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