Legal Question in Business Law in California

Is "Evergreen" clauses legal in California related to Service Contracts automatic renewal?


Asked on 7/13/12, 9:32 am

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Evergreen clauses are generally enforceable, provided that they are printed clearly and obviously and not buried in fine print where the average person would not notice them. In a few types of "consumer" contracts, there may be specific statutory requirements for placement and type size. The usual rule is that self-renewing contracts are lawful provided that they are not "unconcionable" - meaning that some judge agrees with the complaining party that the clause is grossly unfair.

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Answered on 7/13/12, 10:05 am


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