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What Is The Effective Date Of An Agreement

In other cases, the parties may enter into a transaction orally “on a handshake” with the intention of reaching a written agreement later. Many years ago, one of my clients was in urgent need of borrowing $1 million. To my surprise, a benevolent lender transferred the money to the customer without any credit paper available, but with the hope of receiving a promissor note later. Contrary to popular belief, supporting documents is not necessarily illegal. In fact, this has been allowed for so long that there is a Latin expression, nunc pro tunc, which describes the saved documents. The “contract date” is the date that is often found on the cover or the last page of the contract. The “date of signature” is, unsurprisingly, the date that appears next to or under the signature of each party and indicates the date of signature of the contract. Confusingly, contracts may also contain defined data such as “start date”, “effective date” or “start date”. This data indicates when the contract or parts thereof must have legal effect if such data deviates from the contract and/or signature data.

4. Has the document been reversed to comply with (or avoid) any laws or regulations with which it must be complied with? I would prefer to talk only about the date of this agreement. Why give the reader an unnecessarily defined term? Finally, you sometimes see the expiration date used in a contract to refer to a date from the past. For example, parties to a distribution agreement signed on March 31, 2007 may wish sales to be included as of January 1, 2007 for the purpose of determining 2007 sales.

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