Finally, you will sometimes see the validity date used in a contract to refer to a date in the past. For example, parties to a distribution agreement signed on March 31, 2007 may wish to have sales included as of January 1, 2007 for the 2007 sales determination. It would be simpler and clearer to say so much rather than use the term “effective date” and define it as January 1, 2007. I prefer to refer to the date of this agreement. Why add an unnecessarily defined term to the reader? Sometimes the parties use the validity date to refer to a future date on which either agreement will occur. For example, a January 2004 employment contract probably refers to the date on which the worker will actually start working: if a contract is dated by dating their signatures instead of adding a date to the introductory clause (as I am referring to in this blog post), we see the effective date that is used to indicate the date on which all parties signed. : THIS agreement (this agreement) will be concluded on May 4, 2007 (effective date) between Acme Holding Corporation (“Acme”), Astute Advisors LLC (“Contractor”) and Don R. Jones (“Jones”). But I am doubtful of using the defined term of validity date in a contract to obtain the effectiveness of this contract. First, the validity date is sometimes used to refer to the date indicated in the introductory clause, as in this example – which I did not correct, even though I changed the names – in the SEC`s EDGAR database: it is customary, in a contract, to refer to the effectiveness of something or other – perhaps a merger – or a declaration of registration. There is no dispute about that. when a deadline is set by the contract or set by the contract, at a date set within that time, unless the circumstances indicate that the other party must choose a time frame; But it is misleading to commit to the effectiveness of the agreement on the date the employee will take office, as the agreement will be effective once the parties have signed it.
Instead, it is the company`s obligation to pay the employee and the employee`s obligation to work for that salary that starts later, and I would say that in the contract. If you need a defined term to refer you to that day later, I will use something like the start date. The duration of the agreement begins on the first day of the Company`s fiscal year beginning in 2004 (effective date) and ends on the last day of the Company`s fiscal year ending in 2007, subject to prior termination in accordance with Section 7 below (the “duration”). But as I notice in this blog, I find it easier to organize things so that I can use the date of this agreement in this context.