The effective date of the contract is the effective date (or the effective date of the contract) which may differ from the date of performance. This date cannot precede the date of performance, which means that a contract can only enter into force after all parties have signed it. By signing the contract, all parties declare that they agree on the date of entry into force. I could have behaved with the first sentence, but I wanted to make sure that anyone who uses that language feels comfortable when the phrase is used for the date of this agreement, even if no date is included in the introductory sentence. (One day, I`ll soon be blogging about the excessive use of the set validity date.) The entry into force or validity clause of the Agreement shall fix the date of entry into force of the rights and obligations arising from the Agreement. The date of entry into force shall not be the same as the date of execution. In the absence of a date of entry into force, the terms of the implementing agreement shall take effect. Ken Adams of Koncision argues that, in those circumstances, it is clearer to include the date of the contract in the opening clause and to designate that date as `the date of that agreement`. Example: the validity date can be used to refer to a date in the future. This is often used in employment contracts that link the effective date to the day the employee starts work. But as Ken Adams points out, “it is misleading to link the effectiveness of the agreement to the date the employee starts work, since the agreement is effective once the parties have signed it.” This is not necessarily true – an agreement may postpone the rights and obligations of the parties to a future – it may not be in the best interest of the parties to a contract of employment to defer all rights and obligations, but to define the duration of employment and to fix the duration of the benefit and payment.
The term of this Agreement begins on the first day of the business`s business beginning in 2004 (the “Effective Date”) and ends on the last day of the business year ending in 2007, subject to prior termination in accordance with Section 7 below (the “Term”). And I didn`t feel comfortable using only the second sentence, because I wanted to make it clear that the contract takes effect at the time all parties have signed it and not, say, midnight at the beginning of the date on which all parties signed it. . . .