When i get an upgrade with at&t does that mean i renew my contract aswell?

My contract has been over since may 2013 i'm up for an upgrade in september 2013 is there a way i can get the iphone 5 for the contract price then cancel my contract? I'm really CONFUSED.

If you upgrade, this means you are renewing contract.

Yes, you renew your contract when you upgrade if you get the discounted price. If you only pay $99 to $150 for your new iPhone, you signed a new contract.