Meaning & use
evergreen contract
Last updated
Meanings
nouncountablebusinesslegal
A contract that renews itself automatically at the end of each period unless one side cancels it.
Grammar: Countable: you can say 'an evergreen contract' or 'evergreen contracts'.
Patterns
- sign an evergreen contract
- an evergreen contract with someone
- renew an evergreen contract
The software company signed an evergreen contract with its main supplier.
Under an evergreen contract, the deal continues year after year unless you give notice.
She checked the terms of the evergreen contract before deciding to cancel.
nouncountablelegal
A legal agreement that stays in force indefinitely and has no fixed end date.
Grammar: Countable; often used with 'into': enter into an evergreen contract.
Patterns
- enter into an evergreen contract
- an evergreen contract clause
- terminate an evergreen contract
The lawyers drafted an evergreen contract that would last until either party gave notice.
An evergreen contract can be risky if you forget the cancellation deadline.
They ended the evergreen contract after ten years.
Word forms
| plural | evergreen contracts |
|---|
Common combinations
- sign an evergreen contract
- We signed an evergreen contract with the hosting provider.
- an evergreen contract with someone
- They have an evergreen contract with a local cleaning firm.
- cancel an evergreen contract
- You must cancel an evergreen contract in writing before the renewal date.
- evergreen contract clause
- The evergreen contract clause automatically extends the term.
- renew an evergreen contract
- The system will renew the evergreen contract unless you opt out.
Synonyms and how they differ
- automatic renewal contract
- A plainer term for the same idea; it is more common in everyday business talk than in formal legal writing.
- rolling contract
- Similar, but a rolling contract often renews for a short fixed period (such as monthly) rather than indefinitely.
- perpetual contract
- Stronger and more formal; it suggests the agreement lasts forever, while an evergreen contract can usually be ended with notice.
Opposites
Word family
- evergreen adjective
- Used in business to mean 'always continuing or always relevant'.
- evergreen clause noun
- The part of a contract that makes it renew automatically.
Commonly confused: evergreen contract or evergreen?
evergreen contract vs evergreen
As a plant term, 'evergreen' means a tree or bush that keeps its leaves all year. The business meaning is different: it describes something that renews or stays fresh automatically.
Practice
Which sentence uses 'evergreen contract' correctly?
Choose one answer.
An evergreen contract is a business or legal agreement that renews automatically, so sentence B fits. A confuses it with the plant meaning of 'evergreen', and C and D use the phrase with the wrong grammar and meaning.
Make it your own
Write a sentence using “evergreen contract”, then check it and compare it with the examples above.