It is customary to recall in a contract the effectiveness of something or another – perhaps a merger or a declaration of registration. This is not to complain. First, the effective date is sometimes used to refer to the date indicated in the introductory clause, as in this example – which I have not corrected, although I have changed the names – of the SEC`s EDGAR database: this management agreement (this agreement) will be entered into and entered into on the 4th day of May 2007 (the “effective date”) by and between Acme Holding Corporation. (“Acme”), Astute Advisors LLC (“Contractor”) and Don R. Jones (“Jones”). When a contract is dated to the fact that the parties date their signatures and do not include a date in the introductory clause (something I talk about in this blog post), the effective date is the date on which all parties signed each other: the duration of this agreement begins on the first day of the company`s exercise beginning in 2004 (“effective date”) and ends on the last day. Date of the business year ending in 2007, subject to prior termination in accordance with section 7 below (the “Term”). But as I see in this blog post, I think it`s easier to sort things out so that I can also use the date of this agreement in this context. But I doubt that I will use the defined notion of a date of entry into force in a treaty to underline the effectiveness of that treaty. However, it is misleading to link the effectiveness of the agreement to the date on which the employee begins work, given that the agreement is effective once the parties have signed it. Instead, it is the obligation for the company to pay the employee and the obligation for the employee to work for that salary that starts later, and that is what I would say in the contract.
If you need a defined term to refer to that later date, I would use something as the start date. Sometimes the parties use the effective date to refer to a future date when either agreement arises. For example, this comes from an employment contract of January 2004 and probably refers to the date on which the worker will actually start working: I prefer to refer only to the date of this agreement. Why make the reader understand an unnecessarily defined term? This Agreement is effective (the “Effective Date”) on the date this Agreement is signed by both parties. Finally, you 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 31 March 2007 may wish to have sales included from 1 January 2007 for the purpose of calculating 2007 sales. It would be easier and clearer to say the same instead of using the term date of entry into force and defining it to mean 1 January 2007. where a date is fixed by the contract or can be determined outside the Treaty, on that date; where a period is fixed by the contract or may be determined in the contract, at any time during that period, unless the circumstances indicate that the other party must choose a date; in any other case, within a reasonable time after the conclusion of the contract. . . .