Evergreen Agreement Template for Germany

An Evergreen Agreement is a continuing contract that automatically renews for successive periods unless terminated by one of the parties. Under German law, these agreements provide legal certainty for ongoing business relationships while incorporating specific protections required by the German Civil Code (BGB) and consumer protection regulations.

When do you need this document?

You need an Evergreen Agreement when establishing long-term business relationships that require continuity and predictability. Service providers use these agreements to secure ongoing client relationships, while suppliers rely on them to guarantee regular orders and payment streams. Technology companies employ evergreen contracts for software licensing, maintenance services, and platform access, ensuring users maintain uninterrupted service while providing predictable revenue. Facility managers and professional service providers use these agreements to establish multi-year relationships with clear renewal terms, avoiding the administrative burden of frequent contract renegotiations.

Key legal considerations

Under German law, evergreen agreements must include clear termination clauses and appropriate notice periods to prevent unfair binding of parties. The agreement should specify the initial term, automatic renewal periods, and minimum notice requirements for termination. Price adjustment mechanisms must be transparent and reasonable, particularly when dealing with consumers under German consumer protection law. The contract must comply with standard terms regulations (AGB-Recht) under sections 305-310 BGB, ensuring that automatic renewal clauses are prominently displayed and not unreasonably disadvantageous. Include provisions for changing business circumstances, service level modifications, and dispute resolution to maintain flexibility while preserving legal enforceability.

Legal requirements in Germany

German Civil Code (BGB) sections 145-157 govern contract formation and require explicit agreement on essential terms including duration and renewal conditions. Automatic renewal clauses must comply with sections 305-310 BGB regarding standard terms, particularly ensuring transparency and fairness in consumer contracts. Commercial agreements between merchants fall under the German Commercial Code (HGB), which may imply additional terms and obligations. The German Act Against Unfair Competition (UWG) regulates automatic renewal terms to prevent unfair commercial practices, requiring clear disclosure of renewal conditions and termination rights. Notice periods must be reasonable and clearly specified, typically requiring written notice to prevent automatic renewal. For consumer contracts, special protection rules apply, including enhanced cancellation rights and restrictions on binding renewal terms.