What is an Effective Date? | ContractSafe

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This date can be in the future, if the parties so agree. Sometimes a written contract specifically provides that the contract will become effective on the date ... 1.800.993.5590 CustomerLogIn   Startfreetrial Pricing Resources Testimonials CaseStudies JourneyApps CityofOlympia Blog Products ContractManagementSoftware EducationContractManagementSoftware HealthcareContractManagementSoftware HospitalContractManagementSoftware HospitalityContractManagementSoftware Non-ProfitContractManagementSoftware SmallBusinessContractManagementSoftware Features ContractAlerts ContractRepository ContractSecurity ContractManagementAI SalesForceContractIntegration DocuSignContractIntegration ZapierContractIntegration CompareContractFeatures ContractTracking About Founders Privacy/GDPR Security ContactUs EffectiveDate ◄BacktoGlossary Whatisaneffectivedate? Aneffectivedateisthedateonwhichlegalrightsorobligationsbecomebindingbetweentwoormoreparties.Effectivedatesariseinabroadrangeofcircumstances. Forexample,contractsoftenincludelanguagestatingthattheentirecontractbecomesoperationalonaspecificdate.Thisdatecanbeinthefuture,ifthepartiessoagree.Sometimesawrittencontractspecificallyprovidesthatthecontractwillbecomeeffectiveonthedateofsigning,withoutspecifyingexactlywhenthatdatewillbe.Ifthewrittencontractdoesnotspecifyaneffectivedate,itbecomeseffectivewhensignedbyallparties(note:thisrulecanbedifferentundertheUniformCommercialCode). Acontractcanalsohavemultipleeffectivedates,dependingontheterminologyusedbythedraftinglawyersandthemeaningof“effectivedate”employed.Let’slookatacoupleofexamples.AninsurancecontractmightbeenteredintobythepartiesonJanuary1,butprovidethattheeffectivedateoftheinsurancecoveragebeginsonFebruary1.Thus,theinsured’sobligationtopaywascreatedbythecontractonJanuary1.However,theinsurerisnotobligatedtostartprovidinginsuranceuntilFebruary1. Inasimilarfashion,anemployerandemployeemightenterintoanagreementonJanuary1whichimmediatelylimitstheemployeefromdisclosingconfidentialinformationtoothers.However,thecontractmayalsoprovidethatwithregardtostartingworkandreceivingsalary,theeffectivedateoftheagreementisFebruary1.   Relatedarticles: Agreementvs.Contract:What’stheDifference? Software SHOWMORE ContractManagementSoftware EducationContractManagementSoftware HealthcareContractManagementSoftware HospitalContractManagementSoftware HospitalityContractManagementSoftware Non-ProfitContractManagementSoftware SmallBusinessContractManagementSoftware ContractManagementSoftwareFreeTrial Solutions SHOWMORE ContractSolutions HealthcareSolutions HospitalitySolutions Non-ProfitSolutions EducationSolutions Shareus! Glossary PrivacyPolicy TermsofUse ©2021ContractSafeLLC



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