Beware the Evergreen Clause
One of the standard practices with a number of technology vendors (especially telecom) is the practice of including an “evergreen clause” into the paperwork that you sign. Essentially, it allows your service provider, vendor, carrier, etc. to automatically renew your contract for a specific level or time, be it a year or more at the end of your agreement. Typically, your sales representative isn’t even aware of this or assumes that it is “just the way it is” to include such verbiage into your contract. Depending on what you’re signing up for, such a clause is never to the benefit of the consumer of the product. Most business executives forget about renewals of their contract, and if it is your intent to leave your carrier at the end of the contract, we have seen where you MUST give them up to 6 months notice.
I have heard many times, the arguement “Well that’s not legal in this state”, or “I’ll sue them if they try to enforce that”. Do yourself a favor, never agree to any evergreen clauses in the first place, keep a copy of your paperwork in a safe place and you will avoid the headache in the future.
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Benny Carreon is the President and CEO of GrayBear Resources Group. GBR is a next-generation telecommunications consulting firm. We aren't a telephone company's vendor disguising itself as a consultant. We don't sell carrier products that would conflict with out mission - our goal is to work for our clients by reducing costs, streamlining services, eliminating waste and fraud while providing the least disruption to your business.
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Please e-mail this to me in April of 2004! Oops.