Evergreen contracts can be terminated in different ways. They can be completed in the same way as they are designed – by the form of agreement between the parties involved. If the parties wish to make changes to the original agreement, they can develop a new contract that defines its changes. This new treaty is extinguished from the original one. The other option may be that one party is not late in the agreement. Although this is an undesirable decision, the contract is still invalidated. In some international jurisdictions, The legislature has stated that companies should be prevented from relying on such clauses unless the service provider demonstrates this: an automatic renewal clause allows an agreement to be pursued for a specified period if the existing agreement is not renegotiated within a specified period, measured from the expiry of the current contract. The extension period depends on the language of the contract, but these clauses generally provide that the contract is automatically extended for the same period (or a shorter term), unless one of the parties wishes to terminate the contract on a specific and predetermined date (i.e. 60 days before expiry). If the contract does not provide a time limit for the extension of the contract, it can generally be extended for an indeterminate period. While automatic renewal clauses have been publicly considered in the consumer context (and these clauses may be considered abusive clauses under the Australian Consumer Law), the exploitation of an automatic renewal clause in the business world is not in itself prohibited by law or by law. According to the above theory, economic operators would take into account the costs of contract renewal, (new) negotiation and termination prior to the decision-making process. Any change in the terms of the contract may result in higher “transaction costs” than the renewal of the same contractual terms.
The fact remains that there are costs in both situations. However, the contracts no longer apply at the end of the term of the contract, so there are no costs associated with termination of the contract.  The applicability of the automatic extension clause varies from country to country. Companies should be mindful of contracting with automatic renewal clauses, as an unlawful termination of the contract for an extended period of time could result in a claim for infringement. Beyond the legislation related to the clause, an important problem related to its use is related to deceptive practices such as consumer fraud, unjust enrichment and breaches of business practices.   Companies often include this clause in their contracts in order to increase their revenues and profitability. It is often used in combination with other unfair business practices, such as over-price.  With regard to insurance policies, the clause is widely used by companies such as UnitedHealth Group (USA), Allianz (Germany), Nippon Life (Japan), Life Insurance Corporation of India, Zurich Insurance Group (Switzerland), MLC Limited (Australia), etc.      Given the nature and coverage of insurance, certain insurance contracts, such as real estate and medical medicine , were taken into account by media representatives – such as newspapers – to implement this clause.   The active notification and retraction times for automatic renewals of these guidelines vary by country and region. In some cases, insurance companies may increase monthly payments for certain types of insurance policies during successive extension periods.  Twin Metals, an American mining conglomerate, has signed several, self-renewal mineral leases with the U.S. federal government. One of them allows the conglomerate to recover copper and other metals from The Upper Minnesota National Forest.  In 2016, the U.S. Department of Agriculture identified concerns about environmental damage in the Upper National Forest as a result of mining.