contract-law
Why contracts are renewed every year?
<p>Why is it often said in contracts that they renew automatically every year, instead of just saying that the contract is for an unlimited time duration?</p>

<p>The only year-based constraint that comes to mind for US contracts, is that any contract that will last longer than the span of a year has to be a written contract (cannot be oral).  Contracts can and do certainly last longer than a year.  In many contractual circumstances, it's appropriate to have a periodic assessment or "escape hatch" that either party can use to politely and reasonably unwind their position...and a calendar year is a convenient signpost.</p>
