Auto-renewal (also called evergreen renewal) is the default in software subscriptions, equipment leases, service retainers and many supply agreements. The contract names a term, a renewal term, and a notice window — "sixty days before the end of the then-current term" — and if nobody acts, the next term begins on the same terms, often at a higher price.
The clause is not the problem by itself; the missed window is. Businesses lose the right to leave a vendor not because they chose to stay but because the date passed while nobody was looking, and the notice period is measured backward from a renewal date that may be years old.
What to do about it
To get out: find the renewal date and the notice period, work out the last day notice can arrive, and send it earlier than that in the form the contract specifies (certified mail or a named address is common; email may not count). Before signing, ask for month-to-month after the first term, a 30-day window, and a written reminder from the vendor before the window opens. The notice-window calculator at /tools/notice-window does the date arithmetic.
"Unless either party provides written notice of non-renewal at least sixty (60) days prior to the expiration of the then-current term, this Agreement shall automatically renew for successive twelve (12) month terms."
Related terms
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Definitions and negotiation guidance here are educational business decision support, not legal advice. Consult an attorney about how any clause applies to your own agreement.