Filter by Categories
Accounting
Banking

Financial Law




Effective Date


The date at which a contract or legal agreement becomes effective. In other words, an effective date marks a point in time at which a contract officially comes into effect and becomes binding on the parties involved.

An effective date may differ from the date on which a contract is signed or initiated (contract date), as not all contracts commence at the date of signing or entering into a contract. Certain contracts include a clause specifying a future date marking the contract’s effective date (actual initiation). An effective date is essential in each and  every contract as it clearly defines the point in time each party will officially assume responsibility for its respective obligations towards the counterparty, including certain tasks and promises that will be performed, and the time other contractual terms and conditions would come into effect.

Effective date is also known as a contract’s commencement date.



ABC
This section covers all terminology and concepts relating to law and regulation of the financial sector in an economy. This includes law ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments