Moreover, an effective date can be a date in the future or the past.Īfter you sign the lease agreement in advance before you move to the apartment, you are not responsible to pay rent or the bills, keep the unit clean, or do anything unless the effective date of the lease officially arrives. Although, it is not the day when the contract comes into effect. It’s the time when parties agree to comply with the terms and conditions of the contract. The day when parties involved in a contract sign the contract is said to be the date of execution. “What is an execution date” of a contract is a question often asked by contractors who have been a part of the contract to be sure whether it complies with the legal requirements. In essence: What is the execution date of a contract? Here’s an explanation of both the terms and what they mean under legal agreements and contracts of your business and websites no matter if the types of those agreements are: To evaluate the difference between a contract and signing a contract coming into effect, you need to understand two key terms: “execution date” and “effective date”. But this is not necessarily the case every time. If you haven’t signed a contract, then you may think that a contract begins with the day when it is signed by the involved parties.