Definition of Effective date:
The date on which an order, ruling, appointment, etc., takes effect.
Business agreements and transactions are documented with effective dates, which are the times when parties to the contract begin their obligations to perform under the contract. These contracts can be in the form of employment agreements, credit or loan agreements, or commercial transaction deals. As far as the effective "date" is concerned, the parties will decide whether the contract should officially begin on the date of signing, on a date that has already passed (backdating), or on a future date.
Date on which a transaction is recorded or when an agreement (such as a contract or an insurance policy) takes effect.
In contract law, the effective date is the date that an agreement or transaction between or among signatories becomes binding. For an initial public offering (IPO), it is the date when shares can first be traded on an exchange.
How to use Effective date in a sentence?
- An effective date can be a date in the past (backdating) or in the future.
- Effective dates are the times when parties to a contract begin their obligations to perform under the contract.
Meaning of Effective date & Effective date Definition