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Definition: An Expiration Date is the ending of any fixed period during which a Contract is operational.
A contract expiration date is a critical element in contract management, marking the end of a contract's validity. It dictates the timeframe within which the terms of the contract are enforceable and both parties are obligated to fulfill their commitments. Identifying and monitoring these dates is essential for effective contract management and ensuring that all contractual obligations are met within the specified period.
Risks of Missed Contract Expiry Dates
Missing a contract expiry date can lead to several risks. For instance, businesses might unexpectedly lose access to essential services, causing operational disruptions. Vendors risk continuing to provide services without receiving payment.
Expired contracts can lead to compliance issues, such as the obligation to delete confidential information or transfer certain assets, which, if not adhered to, can result in legal repercussions.
Businesses with manual contracting processes often lack visibility of contract expiration dates, putting their business at risks including:
The Role of VCLM Software in Managing Contract Expiration Dates
Vendor and Contract Lifecycle Management (VCLM) software offers a comprehensive solution to manage these risks. VCLM integrates vendor management into the contract lifecycle, offering a holistic view of business relationships and compliance. This software makes contract expiration dates easy to track and manage with:
VCLM software alerts owners that contracts are reaching their expiry and action needs to be taken, whether that's a renewal or close-out.
Find out more about managing your contracts by downloading the ebook below.