Effective Date Clause

Summary

This effective date clause sets out the date on which an agreement starts, being the effective date. It does not provide for the duration, or term of the agreement, and so would be required to be used in conjunction with a further clause setting out that duration. This clause includes practical guidance, drafting notes, and alternate clauses. The date on which an agreement is intended to take effect can be different to the date on which it is signed. Unless otherwise provided, an agreement takes effect once signed by all parties. If the effective date is not the date on which the document is signed by all the parties, this should be made clear in the agreement itself in a separate commencement clause. An effective date clause and a term, or duration, clause must always be drafted and interpreted in conjunction with other provisions of the agreement, as these will impact each other. For further discussion, see the related clause Commencement and Term Clause (Cross-Border). See also the ...