effective date and execution date

The effective date is the date that the agreement becomes effective and can be a specified date other than the date the agreement was signed. The final date of acceptance is the date on which the contract becomes binding between the parties.

The Effective Date need not be the same as the execution date. The ex-dividend date is the day on which all shares bought and sold no longer come attached with the right to be paid the most recently declared dividend. This is an important date for any company that has many stockholders, including those that trade on exchanges, as it makes reconciliation of who is to be paid the dividend easier. For instance, the parties to a distribution agreement signed on March 31, 2007, might want sales from January 1, 2007, to be included for purposes of determining 2007 sales. EXECUTION AND EFFECTIVE DATE. In the absence of an effective date, the terms of the agreement become operational upon execution. Finally, sometimes you see Effective Date used in a contract to refer to some date in the past. The Effective Date or Effectiveness of Agreement clause sets the date when the rights and obligations under the agreement become operational. The date of grant of a formal lease in Scotland (i.e.

When signing your next contract, be sure to take note of your effective date and don’t confuse it with your execution date.

It is the date that both buyer and seller have agreed to all terms of the contract and have executed the contract. The execution date is the date that the party signs the document.

Four elements must be satisfied for final acceptance to take place: Although an effective date can (and often does) fall on the same day as the parties sign the contract, it doesn’t have to be. The Effective Date is sometimes defined as a specific date, e.g., “This Agreement, effective as of October 21, 2013 (the ‘Effective Date’)…” In other cases, a contract becomes effective once signed by both parties. the effective date of the lease) is the date of last execution of the lease. The effective date is determined by the final date of acceptance. In witness of the above, this Agreement is executed in duplicate on the dates indicated below with an Effective Date of December 31, 2008.WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO (“Ceding Company”)ATTEST: By: By: Title: Vice President Title: Vice PresidentDate: 1/16/09 Date: 1/16/09TRANSAMERICA INTERNATIONAL RE (BERMUDA) LTD. The usual practice is for both parties to sign the same engrossed document (a legal document which is in its final form) or to send counterpart copies to each party to sign for counterpart execution.