Question

_______________ contract is one that has automatic renewals until one party requests termination.

(a) Uniform

(b) Evergreen

(c) Moderate

(d) On-demand

The question was posed to me during an interview for a job.

My doubt stems from Contract System in section P.W.D of Civil Engineering Drawing

Answer 1

The correct choice is (b) Evergreen

Easiest explanation: If these are left unattended, they can have significant cost impacts with little value. If these agreements won’t work for the company, the clauses stating the contract automatically renews should be removed. If the clause makes sense or cannot be taken out, alerts can still be set in a contract management platform as a reminder.