Effective Date

The effective date is when a contract takes effect and the parties' obligations start running. It is often the same as the signature date, but not always. A contract can be signed on one day and made effective on another, either earlier (backdated to reflect when the parties actually started working together) or later (a future start date).

The effective date usually anchors everything else in the agreement: the length of the term, renewal deadlines, payment schedules, and notice periods are all measured from it. Getting it wrong can shift a renewal or a deadline by months.