Sometimes the parties use the validity date to refer to a future date on which either agreement will occur. For example, a January 2004 employment contract is likely related to the date on which the employee will actually begin work: CET SERVICES GESTION ACCORD (this « agreement ») will be concluded on May 4, 2007 (effective date) of and between Acme Holding Corporation (« Acme »), Astute Advisors LLC (Contractor) and Don R Jones (« Jones »). For example, some contracts, such as shareholder contracts. B, are terminated when a shareholder ceases to hold shares in a company. But it is misleading to commit to the effectiveness of the agreement on 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. I prefer to refer to the date of this agreement. Why add an unnecessarily defined term to the reader? If a contract is dated by the date the parties signed instead of writing a date in the introductory clause (something I`m talking about in this blog post), we see the validity date used to refer to the date on which all parties signed: But as I notice in this blog post, I find it easier to organize things so that things are ordered in this context than in this context, I can also use the date of this agreement. But I am doubtful of using the defined term of validity date in a contract to obtain the effectiveness of this contract. First, the validity date is sometimes used to refer to the date indicated in the introductory clause, as in this example – which I did not correct, even though I changed the names – in the SEC`s EDGAR database: it is customary, in a contract, to refer to the effectiveness of something or other – perhaps a merger – or a declaration of registration.
There is no dispute about that. This agreement begins at the signing and continuation of 2 years, and then automatically extends for successive periods of one year, unless they are terminated in accordance with its conditions.