Each maturity is automatically extended for the next period, such as the original term, unless one of the parties terminates the termination in writing at least thirty (30) days before the current period expires. In 2019, Mobile Telecommunications Network (MTN) has launched a subscription-based mobile phone service in South Africa. The service was a mobile data rate of 1 Mb, which renewed the automatic charge of consumers “40c per megabyte every time they ran out of data”. Subsequently, it was pointed out that this was simply another form of off-network data usage plan. As a result of consumer reaction, the company was forced to withdraw its data plan.  In this warning, Richard Gardiner`s partners, senior partner Tim Scanlan and solicitor Jessica Carroll will discuss more. It is clear that the best way to avoid an automatic extension clause is not to enter into a contract with an automatic renewal clause. If an automatic renewal clause is part of a standard contract, you should have the clause removed. Finally, when purchasing an existing business, a buyer must carefully verify all existing contracts as part of the due diligence process or have their lawyers checked.
This revision helps to avoid the adoption of long-term contracts that are automatically renewed. Alternatively, the parties may enter into negotiations to amend the service contract for the remainder of the extended term. Under this clause, the customer should inform the supplier in writing that he does not wish to renew the contract at least thirty days before the expiry of the current contract. If the client does not terminate in writing in a timely manner, the contract will be automatically renewed> There are many cases that are decided by courts across the country that deal with the applicability of always green clauses relating to various business transactions. In most cases, particularly in commercial commercial business-to-trade contracts, a strict interpretation must be taken in court where the language of the contract is clear and unambiguous. If the language of the contract is not followed and the termination is not granted within the prescribed time, the contract is automatically renewed for a new term. The question for individuals and businesses that are parties to contracts with automatic renewal clauses seems simple: are they enforceable? The answer is, perhaps unsurprisingly, “it depends.” From a time point of view, it is easy for a person to forget to calculate an extension cutoff date that may be a year or more in the future. People who do not feel comfortable with their ability to calculate this kind of thing in the future may want to take a different approach.