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Evergreen Agreement for Canada

Evergreen Agreement Template for Canada

A Canadian-law governed evergreen agreement is a continuous contract that automatically renews for subsequent periods unless terminated by either party. This document establishes an ongoing business relationship while incorporating specific provisions required under Canadian federal and provincial laws. It includes comprehensive terms for automatic renewal, termination rights, notice periods, and price adjustment mechanisms, while ensuring compliance with Canadian competition laws and consumer protection regulations where applicable. The agreement provides flexibility for long-term business relationships while maintaining appropriate protections and exit mechanisms for all parties.

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What is a Evergreen Agreement?

This Evergreen Agreement template is designed for use in establishing long-term, automatically renewing business relationships under Canadian law. It is particularly suitable for ongoing service arrangements, subscription-based business models, or continuous supply relationships where parties intend to maintain a lasting business relationship without the need for frequent contract renewals. The document incorporates essential provisions required by Canadian federal and provincial legislation, including competition law considerations, consumer protection requirements where applicable, and provincial contract law requirements. It includes mechanisms for price adjustments, service level modifications, and clear termination procedures, making it adaptable to changing business needs while maintaining legal compliance. The agreement is structured to provide both flexibility and security, with careful attention to renewal terms, modification procedures, and exit rights to protect all parties' interests.

What sections should be included in a Evergreen Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Term and Renewal: Details of the initial term and automatic renewal mechanism

5. Scope of Services/Products: Core obligations and deliverables under the agreement

6. Payment Terms: Pricing, payment schedule, and price adjustment mechanisms

7. Performance Standards: Required service levels or product specifications

8. Modification Mechanism: Process for updating terms, prices, or specifications over time

9. Termination Rights: Grounds and process for termination, including notice periods

10. Confidentiality: Protection of confidential information

11. Representations and Warranties: Standard and specific assurances from both parties

12. Limitation of Liability: Caps and exclusions on liability

13. Dispute Resolution: Process for resolving disagreements

14. Force Majeure: Handling of events beyond parties' control

15. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

What sections are optional to include in a Evergreen Agreement?

1. Data Protection: Required if personal data is processed under the agreement

2. Intellectual Property: Required if IP is created, licensed, or transferred

3. Insurance: Required for high-risk services or significant liability exposure

4. Security Requirements: Required for agreements involving IT systems or sensitive information

5. Regulatory Compliance: Required for regulated industries or activities

6. Business Continuity: Required for critical services or long-term supply arrangements

7. Environmental Compliance: Required for agreements with environmental impact

8. Change Control: Required for complex services or technical implementations

What schedules should be included in a Evergreen Agreement?

1. Schedule A - Services/Products Specification: Detailed description of services or products

2. Schedule B - Pricing and Payment Terms: Detailed pricing structure, including adjustment mechanisms

3. Schedule C - Service Levels: Specific performance metrics and measurement methods

4. Schedule D - Key Personnel: List of key contacts and responsible individuals

5. Schedule E - Technical Requirements: Technical specifications or system requirements

6. Appendix 1 - Change Request Form: Standard form for requesting changes to the agreement

7. Appendix 2 - Report Templates: Standard formats for required reporting

8. Appendix 3 - Notice Details: Contact information and procedures for formal notices

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses






































Relevant Industries

Technology and Software

Professional Services

Manufacturing

Telecommunications

Healthcare

Facilities Management

Media and Entertainment

Financial Services

Real Estate

Energy and Utilities

Retail

Distribution and Logistics

Education

Business Services

Relevant Teams

Legal

Procurement

Finance

Operations

Sales

Business Development

Risk Management

Compliance

Commercial

Vendor Management

Contract Administration

Account Management

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Business Development Manager

Commercial Director

Chief Financial Officer

Operations Manager

Account Manager

Sales Director

Vendor Manager

Risk Manager

Compliance Officer

General Manager

Chief Operating Officer

Partnership Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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