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? 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”). Date of validity. This agreement is concluded and concluded on [DATE]. Ken Adams of Koncision argues that, in these circumstances, it is clearer to include the date of the agreement in the introductory clause and to characterize that date as “the date of that agreement”. For example, it is misleading to match the effectiveness of the agreement to 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. First, the validity date is sometimes used to refer to the date indicated in the introductory clause, as in this example – which I have not corrected, even though I have changed the names – of the SEC`s EDGAR database: this contract takes effect on the day that both parties sign the contract (the “validity date”) The validity date can be used to refer to a date in the future. This is often used in employment contracts that link the validity date to the date the employee starts working. But as Ken Adams said, “I am not misleading to ensure that the effectiveness of the agreement is linked to the date the employee will take office, because the agreement will be effective once the parties have signed it.” While this may not necessarily be the case – an agreement may defer the rights and obligations of the parties to a future – it may not be in the interest of the parties to an employment contract to defer all rights and obligations, but rather to determine the duration of the employment and to determine the duration of the benefit and payment. Sometimes the parties use the validity date to refer to a future date on which either agreement will occur. For example, the following comes from a January 2004 employment contract and probably refers to the date on which the employee will actually start working: But as I point out in this blog post, I find it easier to organize things so that I can use the date of this agreement in this context.