Contract terms

TermWhat the agreement saysClauseAgreementSource
Auto-renewalMicrosoft (vendor agreement)Recurring billing is on by default for subscriptions paid by card or billing profile, and the subscription is billed again at the end of each term period
Note"When recurring billing is on, we continue to bill your subscription at the end of the subscription term period."
Manage recurring billing in the Microsoft 365 admin centerMicrosoft 365 admin center billing documentation, updated 2026-09-03source [7]
OtherMicrosoft (vendor agreement)Turning off recurring billing does not cancel the subscription: it stays active and accessible until it expires at the end of its termWhat happens when I turn off recurring billing?Microsoft 365 admin center billing documentation, updated 2026-09-03source [7]
Termination for convenienceMicrosoft (vendor agreement)Microsoft Customer Agreement billing account: cancel for a prorated credit or refund only within seven days after the subscription starts or renews
Note"You can only cancel and receive a prorated credit or refund if you cancel within seven days after the start or renewal of your subscription."
Determine your cancellation option - If you have an MCA billing account typeMicrosoft 365 admin center billing documentation, updated 2026-07-08source [8]
RefundsMicrosoft (vendor agreement)Bought through a Microsoft representative or reseller partner under the MCA: seven days to cancel for a pro-rated refund, ten days for organisations in Chile buying through a Chilean partner
NoteA subscription sold through a proposal presented by a Microsoft seller is not eligible for the seven-day policy
What if I bought my subscription through a partner?Microsoft 365 admin center billing documentation, updated 2026-07-08source [8]
RefundsMicrosoft (vendor agreement)Microsoft Online Subscription Agreement billing account: cancelling after the start or renewal gives a prorated credit or refund on the next invoice or in the next billing cycleIf you have an MOSA billing account typeMicrosoft 365 admin center billing documentation, updated 2026-07-08source [8]
True-upMicrosoft (vendor agreement)Licenses added in the middle of a billing period appear on the next invoice; customers paying annually are invoiced for the change within a month
Note"Licenses added in the middle of your billing period appear on your next invoice. If you pay annually, you are invoiced within a month for these changes."
How does buying or removing licenses affect my invoice?Microsoft 365 admin center billing documentation, updated 2025-07-08source [9]
True-upMicrosoft (vendor agreement)MCA billing account: more licenses may be bought at any time, but licenses can only be removed within seven days of buying or renewing; a later reduction takes effect on the first invoice after the renewal dateBuy or remove licenses if you have an MCA billing account typeMicrosoft 365 admin center billing documentation, updated 2025-07-08source [9]
Minimum commitmentMicrosoft (vendor agreement)No purchase minimums
Note"the Microsoft Customer Agreement (MCA) has no purchase minimums and tailored billing plans"
Why choose the Microsoft Customer Agreement?Microsoft Customer Agreement summary pagesource [6]
OtherMicrosoft (vendor agreement)The agreement itself does not expire, unlike volume licensing agreements such as the Enterprise Agreement that run three years
Note"Traditional volume licensing agreements - such as the Enterprise Agreement - typically expire in three years. The MCA never expires."
Why choose the Microsoft Customer Agreement? - It does not expireMicrosoft Customer Agreement summary pagesource [6]
Payment termsMicrosoft (vendor agreement)Each billing profile is invoiced monthly at the beginning of the month for the previous month's usage charges; user-based subscriptions are billed separatelyEach billing profile gets a monthly invoiceMicrosoft Customer Agreement billing account documentation, updated 2026-08-24source [10]

Price changes

No price change recorded yet. History starts the day a product is first captured; a later capture that finds a different price writes an event here.

Sources

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