Renewing a Contract | Zoho Contracts

Renewing a Contract


Introduction

Contract Renewal in Zoho Contracts means renewing the contract for the same or a similar duration in the current contract term. The renewal does not include the alteration of the scope of the contract. To learn how to edit the language in the contract before renewing, see Amendments.

When a contract owner renews a contract, a renewal letter will be automatically generated based on the predefined template, or as customized by the organization admin. The renewal letter will capture and display the contract history in chronological order (past amendments, renewals, and extensions) and the current renewal details. 


There are two types of renewals: 


  • Manual 
  • Evergreen 


In Manual renewal, the contract owner must manually renew the contract before the contract expires. The contract owner can set an expiration reminder in the New Contract form at the time of the creation of the contract. The contract owner will receive a notification for this, as well. 


In Evergreen renewal, towards the end of the contract term the contract will be automatically renewed for the duration that the contract owner had entered in the Renewal Term field in the New Contract form at the time of contract creation. 

Notes

Note:

  • The contract owner can only renew the contract if its term is definite. 
  • In Manual renewal, if the contract owner renews the contract after amending it, the amendment will be applicable only for the current term of the contract, and will not be applicable for the renewed term.

Renew a Contract 

  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract in the Active state that you want to renew. 
  3. Click More  at the top-right corner of the contract details page, then choose Renew Contract. 
  4. Enter the details in the Renewal Details form, then click Save and Continue. The contract will move to the Active - Renewal Pending state. The primary action in the contract during this state changes based on the value chosen in the Sign By field of the Renewal Details form.


Sign By

Primary Action

Both Parties 

Send for Signature 

Own Party Only 

Send for Signature

None 

Mark as Renewed 


  1. Click Mark as Renewed. 


The contract will be renewed, and will be moved to the Active state. The renewal letter will be automatically generated. 


Clicking Send for Signature will redirect you to Zoho Sign. Refer to the detailed steps in the next section. 
Notes

Note: 

  • If the contract is associated with an approval workflow, click Submit for Approval at the top of the contract details page when the contract is in the Active - Renewal Pending state to get the renewal approval.
  • Upon submitting for approval, the contract's approvers will receive the approval request notification. The approvers can open the contract from the notification or the Pending Approvals view in the Activities module.
  • Upon approval, the contract will move to the Active - Renewal Approved state. The primary action in this state will either be Send for Signature or Mark as Renewed, based on the value in the Sign By field. 

Send Renewal Letter for Signature 

In cases where the renewal letter needs the signature of both the parties or just your own organization for a contract to be renewed, the contract owner needs to send the contract for signature. In such contracts, the primary action after the Renewal Pending or the Renewal Approved state will be Send for Signature.  


To send the renewal letter for signature: 


  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract in the Active - Renewal Pending state whose renewal letter you want to send for signature. 
  3. Click Send for Signature at the top of the contract details page, then add signers from the left panel. You will be redirected to Zoho Sign with the renewal letter loaded.
  4. Choose the recipient from the Recipients section in the right panel.
  5. Drag and drop the required fields for the respective recipient from the Fields section in the right panel to the required locations in the document.
  6. Repeat steps 4 and 5 until you add the signature and the other required fields for all the recipients. 
  7. Click Send. 


The signers will receive a signature request email from Zoho Sign. The contract will be renewed, and will move to the Active state when all the signers sign the renewal letter. 

NotesNote: Zoho Contracts has built-in templates for termination letter, renewal letter, extension letter, and amendment letter. An administrator can customize the templates. To learn more, see Contract Letters.  

Download Renewal Letter

  1. Select the Contracts tab at the top of the page.
  2. Click to open the record that you want to proceed with.
  3. Click the  More actions menu, then choose Download Renewal Letter.

Upload Signed Renewal Letter

  1. Select the Contracts tab at the top of the page.
  2. Click to open the contract in the Renewal Pending state that you want to renew.
  3. Click Upload Signed Renewal Letter at the top. 
  4. Upload the Signed Renewal Letter and the Digi Sign Certificate (Optional) that you have received from the counterparty, then choose the Signed Renewal Letter Date.
  5. Check the Add Signer Details checkbox to add the signer details.
  6. Choose the signers from the respective dropdown list under Organization Representatives and Counterparty Representatives to add signers from your organization and the counterparty. 
  7. Click Add to add the Other Representatives, then enter the names and email addresses under Other Representatives to add any other signing representatives outside your organization or the counterparty.
  8. Check the Set Signing Order checkbox if you want to set a signing order.
  9. Click Upload once you have updated all the details. 
Notes
Note: Once a renewal letter has been sent for signature through online methods, uploading a signed renewal letter is no longer permitted. To upload a signed renewal letter, you must delete the existing renewal and initiate the process again.

Re-upload Signed Renewal Letter

  1. Select the Contracts tab at the top of the page.
  2. Click to open the contract in the Renewal - Signed state that you want to re-upload the signed renewal letter.
  3. Click the  More actions menu, then select Re-upload Signed Renewal Letter. 
  4. Upload the Signed Renewal Letter and the Digi Sign Certificate (Optional) that you have received from the counterparty, then choose the Signed Renewal Letter Date. 
  5. Click Upload once you have updated all the details. 
Notes
Note: You can re-upload the signed renewal letter while the renewal is in the Signed state, provided it has not yet moved to the Active status.

Edit Renewal Reminder Settings

You can edit the renewal reminders of a manually renewable contract at any time before it expires.

  1. Select the Contracts tab at the top of the page.

  2. Click to open the contract whose renewal reminders you want to edit.

  3. Click More in the contract details panel on the left, then choose Renewals.

  4. Click Reminder Settings at the top of the Renewals panel.

  5. Choose when the first reminder must be sent before the contract expires from the Send First Reminder dropdown in the Reminder Settings pop-up. If Custom is chosen, enter the required interval in the field that appears and choose either Days or Weeks.

  6. Choose how often the reminder must be repeated until the contract expires from the Repeat Reminders dropdown. If Custom is chosen, enter the required interval in the Repeat Every field and choose either Days or Weeks.

  7. Click Save.

NotesNote: If Weeks is chosen in the Repeat Every field, select the day of the week on which the reminder must be sent. For an interval of more than one week, select both the week number (first, second, and so on) and the day of the week on which the reminder must be sent.

 Edit Renewal Details

  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract whose renewal details you want to edit. 
  3. Click More  in the contract details panel on the left, then choose Renewals. 
  4. Click More  next to the renewal that you want to edit, then choose Edit. 
  5. Change the values in the Renewal Details form as required, then click Update. 

NotesNote: The contract owner can only edit the renewal details when the contract is in the Renewal Pending state. 

Delete a Renewal

  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract whose renewal you want to delete.
  3. Click More  at the top-right corner of the contract details page, then choose Delete Renewal. 

NotesNote: The contract owner can only delete the renewal when the contract is in the Renewal Pending, Renewal Approval Pending, or Renewal Approved state. 

Send Renewal Letter Post Renewal  

  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract in the Active state whose renewal letter you want to send to your counterparty contacts. 
  3. Click More  at the top-right corner of the contract details page, then choose Send Renewal Letter. 
  4. Select the counterparty contacts from the To field in the Send Renewal Letter dialog box. 
  5. Check the Add Cc checkbox to copy other people in the renewal email.
  6. Enter the other details, then click Send. 


The counterparty contacts and organization members that you have selected will receive the renewal letter of the contract via an email. 


View Renewal History

  1. Select the Contracts tab at the top of the page. 
  2. Click to open the contract whose renewal history you want to view. 
  3. Click More  in the contract details panel on the left, then choose Renewals. 


The Renewals tab will display the extension and renewal history of the contract in chronological order.