Tip of the week: Tacit renewal of contracts
Many contracts include a mention of « tacit renewal ».
If the customer wants to end the contract at the end of the period agreed, he will have to send a letter of resignation one, three or sometimes 6 months before the end of the contract. If he won’t do so, the contract will be automatically extended for a define length (usually one year).
To avoid a situation where you have no choice except to wait the next end date, Bridgewater advises you to always replace the mention of tacit renewal by the following:
« 3 months (or 6 months) before the end of the contract, the provider will contact the customer to evaluate the future of the partnership ».
The advantages:
- You don’t have to care about the end dates of all your contracts (the provider will)
- You are sure to negotiate new and best conditions.
