Dating Your Agreement

Tips for contract drafting

Very often, business is conducted without a contract in place, or a contract may be entered into with entrepreneurial optimism despite certain basic pre-conditions not being fulfilled. Simply put, irrespective of when a contract is signed between parties, Effective Date determines the date on which the contract becomes binding and enforceable.

Primarily, Execution Date is the date on which the contract is signed and executed between the parties, whereas an Effective Date means the date from which the rights and obligations of parties come into effect. This blog post seeks to set out broad principles for the two concepts and their interconnection in day-to-day business transactions and offer a paradigm to view their importance to drafting .