What Is a Rolling Contract?

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A rolling contract is a contract that has no defined cancellation date and ends only upon the request of one of the involved parties. Rolling contracts are commonly used in business-to-business and business-to-consumer transactions, such as rental agreements and warranties.

Rolling contracts are usually for specified time periods, such as a 30-day rolling contract rental lease. In this scenario, the renter and landlord each have the right to give the other a 30-day move-out notice. Rolling contracts are also commonly used between independent contractors and clients.

Rolling policies are a type of rolling contract issued with the purchase of a good, usually an electronics product or a communications device. These policies are usually free with a purchase for a designated time period and directly withdraw the premiums from the customer’s bank account after the end of the complimentary period. Many consumers continue to pay insurance premiums for these goods because they fail to notice the charges on their bank accounts, according to The Guardian.

High-level sports professionals, such as coaches, are often hired with rolling contracts. These contracts are generally for extended time periods. After the completion of the initial period, the university or the owner of a professional team can let the coach go, or the coach can quit on his own. If the contract continues for another year, the owner of the team can usually buy out the coach at any time by paying the monetary remainder of the contract.