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JBaxLaw
JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11331
Experience:  Experienced in business formation and licensing issues
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I have a telecommunications contract with XO Communications

Resolved Question:

I have a telecommunications contract with XO Communications which contains an "Evergreen Clause". The contract already rolled over once. We want to cancel our service and use another provider, and see that the contract provides for substantial finaicial penalty for cancellation prior to the term.

Are Evergreen Clauses valid and upheld in Michigan? Can I cancel without fear of reprisal?
Submitted: 5 years ago.
Category: Business Law
Expert:  JBaxLaw replied 5 years ago.
Hello,

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ANSWER:

Automatic renewal clauses are permissible. The law does not prohibit cancellation fees. I see that your contract is with a business service provider. No state or federal law prevents parties to a contract from agreeing to an automatic renewal clause.

Thank you
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