Evergreen Contract Law and Legal Definition Evergreen contract is a contract that is renewed automatically or by notice from year to year until canceled by the either party. The renewal can be after completion of the act or maturity. The renewal continues till cancellation. A: The short answer is that the terms and conditions of the software license contain an "automatic renewal" or "evergreen clause." An evergreen clause provides that the term of an agreement will automatically renew for some period of time unless one party provides notice to the other party that it does not wish to renew.