Depending on the contract, the validity date and the date of execution may be the same. Read your contract carefully to determine exactly when it will start. Note, however, that there are different ways to include a validity date in a contract. Sometimes a validity date is a fixed date, which is explicitly stated. However, the contract may not start on a fixed date and may be subject to conditions. If a contract begins on the date all parties sign it, it is a conditional validity date. A contract may also begin after important documents have been filed with the state or on the date a licence is issued. The termination date marks the end or expiry date of the contract. Also known as the expiry date or completion date, this is the period during which a final payment is due to conclude the contract. «This agreement is concluded and concluded on [DATE] of [PARTIES].» Ken says, «Why add an unnecessarily defined term to the reader?» «Effective Date,» July 2007. When two parties enter into a financial contract, they agree to certain conditions. Depending on the nature of the contract, these provisions may include each party`s obligations and responsibilities, payment terms, maturity dates, interest rates, additional charges, financial instruments involved, what happens when a party fails to meet its obligations and the end date of the contract. In many cases, the execution date of a contract comes before the validity date.

Under these conditions, the date on which all parties sign the contract is different from the date on which the contract enters into force. Ken Adams of Koncision argues that, in these circumstances, it is clearer to include the date of the agreement in the introductory clause and to characterize that date as «the date of that agreement». For example, as mentioned above, the termination date marks the end of the contract and also indicates the date on which the final payment or payment is due. Payment may include interest, fees or other fees to comply with and terminate the terms of the contract.