When setting up a new contract in EvergreenWorx Contracts, one of the key specifications you’ll define is the Contract Term. This setting identifies whether the contract has a clearly defined duration or is open-ended, and it impacts how the contract is tracked, renewed, and reported.
EvergreenWorx supports two types of contract terms:
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Definite
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Indefinite
This article explains the difference between the two and how to decide which is appropriate for your contract.
Definite Contract Terms
A Definite contract term indicates that the contract has a clear start and end date.
Characteristics
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Requires both an Effective Date and an End Date.
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Typically used for contracts with a fixed duration, such as 1-year service agreements, project-based contracts, or lease terms.
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Easier to manage renewal cycles and expirations.
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Enables tracking of contract performance over a defined period.
Use Cases
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Service contracts with a defined term (e.g., Jan 1 – Dec 31).
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Vendor agreements that expire unless renewed.
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Employment contracts for a set term.
System Behavior in EvergreenWorx
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End Date is a required field.
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Expiration alerts and task reminders can be configured based on the End Date.
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Renewal configuration options are activated for definite contracts.
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If the contract’s Status Reason is Signed and the Effective Date is on or before today, the system will automatically set the Status Reason to Active.
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If AutoRenew is disabled and the End Date is reached while the contract is Active or Terminating, the system will automatically set the Status Reason to Expired.
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If AutoRenew is enabled, the system will automatically extend the End Date based on the configured Renewal Term Unit and Value.
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If Expiration Notice Days are set, the system will automatically notify the Contract Owner when the End Date is approaching and the contract is Active or Terminating.
Indefinite Contract Terms
An Indefinite contract term means the agreement continues until an action is taken to terminate it.
Characteristics
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Requires an Effective Date, but does not require an End Date.
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Used when a contract is meant to be ongoing or open-ended.
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Termination is usually governed by a notice clause rather than a specific date.
Use Cases
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Ongoing service agreements with no expiration.
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Master service agreements (MSAs) or framework agreements.
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Utility or subscription contracts that auto-renew until canceled.
System Behavior in EvergreenWorx
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End Date is not required.
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You can optionally define Termination Notice Days and Cancellation Notice Date.
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If a Cancellation Notice Date is provided while the contract is Active, the system will automatically change the Status Reason to Terminating and disable AutoRenew.
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If the contract’s Status Reason is Signed and the Effective Date is on or before today, the system will automatically set the Status Reason to Active.
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If Expiration Notice Days are set and an End Date is defined (e.g., for hybrid term handling), the system will notify the Contract Owner when nearing expiration.
Best Practices
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Choose Definite when your contract has a fixed timeline or you want to leverage automated renewal tracking.
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Choose Indefinite when the contract is evergreen or managed through manual termination.
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Ensure consistent configuration of date fields based on the selected term type to support reporting and workflows.
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Use AutoRenew and Expiration Notice settings to automate contract continuity and notification workflows.
Understanding how contract terms affect your record structure and lifecycle in EvergreenWorx Contracts is key to setting up reliable automation, analytics, and compliance processes.
