Evergreen License Agreement

The question for individuals and companies that are parties to contracts that contain an Evergreen clause seems simple: “Are they enforceable?” The answer may not be surprising: “That`s what matters.” While case law may favour parties trying to enforce these clauses, some state legislators have passed laws that may make it more difficult for those parties to rely on evergreen clauses. Here`s a perfect example: look at the “Evergreen Clause” or the author`s whale. While an Evergreen clause provides comfort for both parties, as they don`t need to renegotiate the terms of the contract on the expiration date, one party may feel stuck and unhappy. In a case where a disgruntled party forgets to terminate the contract after it expires, it may be suspended for another period.