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Effectiveness of agreement clause: Copy, customize, and use instantly

Introduction

An effectiveness of agreement clause defines when and how the agreement becomes binding and enforceable. It ensures that both parties understand when the terms of the agreement will be considered active, and any conditions that must be met before the agreement takes effect. This clause helps clarify the timeline and preconditions for the agreement’s enforcement.

Below are templates for effectiveness of agreement clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.

Standard effectiveness of agreement clause

This version provides a general framework for the agreement’s effectiveness.

This Agreement shall become effective upon execution by both Parties. The terms of this Agreement shall be binding and enforceable from the date of execution, unless specified otherwise in this Agreement.

Effectiveness of agreement clause with provision for conditional effectiveness

This version includes conditions for effectiveness.

This Agreement shall be effective only upon the satisfaction of the following conditions: [list any conditions], which must be met within [X] days of the execution of this Agreement. If such conditions are not met, the Agreement shall be deemed null and void.

Effectiveness of agreement clause with provision for date-specific effectiveness

This clause specifies the date of effectiveness.

The effectiveness of this Agreement shall be retroactive to [insert specific date], and the terms herein shall apply as of that date, unless the Parties otherwise agree in writing.

Effectiveness of agreement clause with provision for formal approval

This version includes formal approval as a condition.

This Agreement shall be effective upon the formal approval of [Company Name]’s board of directors, or another designated authority, whichever is applicable. The Parties agree that no rights or obligations shall be considered binding until such approval is granted.

Effectiveness of agreement clause with provision for execution by authorized representatives

This version ensures the agreement is effective upon execution by authorized representatives.

This Agreement shall become effective upon execution by both Parties, and each Party represents and warrants that the individual executing this Agreement is duly authorized to bind their respective Party.

Effectiveness of agreement clause with provision for effectiveness upon delivery of documents

This version requires the delivery of documents.

The effectiveness of this Agreement is contingent upon the delivery of [specific documents] by [Party] to [other Party] within [X] days. The Agreement shall become effective immediately upon receipt of all required documents.

Effectiveness of agreement clause with provision for mutual agreement of terms

This clause ties effectiveness to mutual agreement.

This Agreement shall become effective upon mutual agreement of all terms by the Parties, evidenced by their signatures. If any terms remain unresolved, this Agreement shall not take effect until both Parties have agreed in writing to the final terms.

Effectiveness of agreement clause with provision for effectiveness based on certain event

This version links the agreement’s effectiveness to an event.

This Agreement shall become effective upon the occurrence of the following event: [insert event]. If the event does not occur by [insert date], this Agreement will be deemed void and of no effect.

Effectiveness of agreement clause with provision for effective date upon execution

This clause sets the effective date as the date of execution.

This Agreement shall become effective on the date it is executed by both Parties, and all terms and obligations shall be binding from the execution date unless otherwise specified in the Agreement.

Effectiveness of agreement clause with provision for delayed effectiveness

This version allows for a delayed effectiveness.

The effectiveness of this Agreement shall be delayed until [insert date], and all obligations under this Agreement shall begin on that date, provided that the Agreement has been executed by both Parties.

Effectiveness of agreement clause with provision for condition precedent

This version includes a condition precedent for effectiveness.

This Agreement shall be effective only upon the satisfaction of the following condition precedent: [insert condition]. If the condition is not met within [X] days, the Agreement shall not be effective, and neither Party shall have any obligations under this Agreement.

Effectiveness of agreement clause with provision for termination before effectiveness

This clause allows for termination before the agreement becomes effective.

The Parties agree that this Agreement shall not become effective unless executed by both Parties. Either Party may terminate this Agreement at any time before execution without penalty, and such termination will not affect any obligations incurred before the Agreement becomes effective.

Effectiveness of agreement clause with provision for execution via electronic means

This version allows for electronic execution.

This Agreement shall be effective upon execution by the Parties, which may occur through electronic signatures. The Parties agree that electronic signatures shall have the same effect as manual signatures and will be deemed binding upon execution.

Effectiveness of agreement clause with provision for effectiveness based on financial arrangement

This version ties effectiveness to a financial arrangement.

The effectiveness of this Agreement is contingent upon [Party] receiving the agreed-upon payment or deposit of [insert amount] within [X] days of execution. If the payment is not made, this Agreement will not be effective.

Effectiveness of agreement clause with provision for written notice of effectiveness

This clause requires written notice of effectiveness.

This Agreement shall be effective upon [Party] sending written notice to [other Party] confirming that all necessary conditions have been satisfied. The notice shall be sent within [X] days of execution.

Effectiveness of agreement clause with provision for performance-based effectiveness

This version ties effectiveness to performance.

This Agreement shall become effective once [Party] has started performing the obligations set out in [specific section] of the Agreement. The performance of these obligations shall be considered evidence that the Agreement is in effect.

Effectiveness of agreement clause with provision for review by third-party before effectiveness

This clause involves third-party review.

The effectiveness of this Agreement is contingent upon the review and approval of [third-party], who must verify that the terms of the Agreement meet the standards set forth by [relevant authority]. The Agreement shall be effective upon receipt of the third-party’s approval.

Effectiveness of agreement clause with provision for effectiveness upon receipt of funds

This version links effectiveness to the receipt of funds.

This Agreement shall become effective upon [Company Name]’s receipt of [insert amount or funds] from [Party] within [X] days of execution. The terms of this Agreement will apply from the date of receipt of funds.

Effectiveness of agreement clause with provision for effectiveness upon closing of transaction

This clause ties effectiveness to the closing of a transaction.

This Agreement shall become effective upon the closing of [insert transaction], which is expected to occur by [insert date]. If the transaction is not completed by this date, this Agreement will not be effective.

Effectiveness of agreement clause with provision for effectiveness upon regulatory approval

This version ties effectiveness to regulatory approval.

The effectiveness of this Agreement is contingent upon the approval of [regulatory body]. If approval is not granted by [insert date], this Agreement shall be deemed void and of no effect.

Effectiveness of agreement clause with provision for automatic effectiveness under certain conditions

This version allows for automatic effectiveness.

This Agreement shall automatically become effective on [insert date], unless one Party notifies the other in writing of their intention to withdraw from the Agreement before this date. The Agreement shall be binding from the effective date.

Effectiveness of agreement clause with provision for post-signature effectiveness

This clause allows for effectiveness post-signature.

This Agreement shall become effective upon the signatures of both Parties, and the terms will be binding from that moment onward, unless a later date is specified in the Agreement for the commencement of specific obligations.

Effectiveness of agreement clause with provision for retroactive effectiveness

This version allows retroactive effectiveness.

This Agreement shall be retroactively effective as of [insert date], and the terms shall apply from that date forward. The Parties agree to act in accordance with the terms and conditions of the Agreement, retroactively as of the effective date.

Effectiveness of agreement clause with provision for effectiveness upon completion of due diligence

This version ties effectiveness to due diligence completion.

This Agreement shall become effective upon the completion of the due diligence process to the satisfaction of [Party]. If the due diligence process reveals any material issues, [Party] reserves the right to terminate the Agreement before it becomes effective.

Effectiveness of agreement clause with provision for effectiveness upon signing by all parties

This clause ensures signing by all parties for effectiveness.

This Agreement shall become effective only upon the execution of the Agreement by all Parties. The Agreement will be binding from the date of the last signature, and no rights or obligations shall be deemed to exist until that time.

This version allows mutual consent for effectiveness.

This Agreement shall become effective upon mutual written consent of the Parties, after any outstanding conditions or negotiations are resolved to the satisfaction of both Parties. Until such mutual consent is given, the Agreement will have no binding effect.

Effectiveness of agreement clause with provision for condition precedent for effectiveness

This clause includes a condition precedent for effectiveness.

The effectiveness of this Agreement is contingent upon the fulfillment of the following condition precedent: [insert condition]. If the condition is not satisfied by [insert date], this Agreement shall not become effective, and neither Party shall have any further obligations.

Effectiveness of agreement clause with provision for effectiveness based on client approval

This version requires client approval.

The effectiveness of this Agreement is contingent upon obtaining approval from [insert client name] or any other required third-party within [X] days of the execution of this Agreement. If approval is not obtained, the Agreement will not become effective.

Effectiveness of agreement clause with provision for effectiveness upon mutual fulfillment of obligations

This clause makes effectiveness contingent upon fulfilling obligations.

This Agreement shall become effective upon both Parties fulfilling the preliminary obligations outlined in Section [X]. The Parties agree that these obligations must be satisfied within [X] days to trigger the effectiveness of the Agreement.

Effectiveness of agreement clause with provision for effectiveness upon deposit payment

This version links effectiveness to deposit payment.

This Agreement shall become effective upon the receipt of a deposit of [insert amount] by [Party]. If the deposit is not received within [X] days, this Agreement will not become effective, and the Parties will have no further obligations.

Effectiveness of agreement clause with provision for no retroactive effect

This version specifies no retroactive effect.

This Agreement shall not have any retroactive effect and shall only become effective from the date of execution. No rights or obligations under this Agreement shall apply to any period before the effective date.

Effectiveness of agreement clause with provision for effectiveness based on contract finalization

This clause links effectiveness to finalization of the contract.

This Agreement shall become effective upon the finalization of all terms, which shall be documented in the final executed contract. Until finalization, the Agreement remains subject to further negotiations and amendments, and no binding obligations shall exist.

Effectiveness of agreement clause with provision for extension of effectiveness period

This version allows for an extension of the effectiveness period.

The Parties agree that the effectiveness of this Agreement may be extended by mutual written agreement for an additional period of [X] months. The extension shall be documented in writing, and the terms of the Agreement will apply for the extended period.

Effectiveness of agreement clause with provision for effectiveness upon mutual confirmation

This clause includes mutual confirmation for effectiveness.

This Agreement shall become effective once both Parties provide written confirmation that they have reviewed and agreed to all terms. Until confirmation is received from both Parties, the Agreement will not be binding.

Effectiveness of agreement clause with provision for execution in counterparts

This version allows execution in counterparts for effectiveness.

This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. The Agreement shall become effective upon the execution of both Parties, even if executed in separate counterparts.

Effectiveness of agreement clause with provision for automatic effectiveness on a specified date

This clause provides for automatic effectiveness on a specific date.

This Agreement shall automatically become effective on [insert date], regardless of the date of execution. All obligations under this Agreement will commence on the specified effective date, and the Parties agree to act in accordance with the terms from that point forward.

Effectiveness of agreement clause with provision for effectiveness contingent on market conditions

This version ties effectiveness to market conditions.

The effectiveness of this Agreement is contingent upon the prevailing market conditions on [insert date]. If market conditions are unfavorable, either Party may delay the effectiveness of the Agreement or terminate it without penalty.

Effectiveness of agreement clause with provision for effectiveness upon completion of government approvals

This version links effectiveness to government approvals.

This Agreement shall become effective upon the receipt of all necessary government approvals, licenses, or permits required for the transaction described herein. If approval is not obtained within [X] days, this Agreement will not become effective.

This clause ensures related documents are executed.

This Agreement shall become effective only upon the execution of all related documents necessary for the transaction, including [insert documents]. Until all documents are executed, no rights or obligations under this Agreement shall exist.

Effectiveness of agreement clause with provision for effectiveness upon conclusion of negotiations

This version links effectiveness to the conclusion of negotiations.

This Agreement shall become effective upon the conclusion of negotiations, at which point both Parties will sign the Agreement and commence their respective obligations. If negotiations fail, this Agreement will not take effect.

Effectiveness of agreement clause with provision for effectiveness based on resolution of disputes

This version ties effectiveness to the resolution of disputes.

The effectiveness of this Agreement is contingent upon the resolution of any outstanding disputes between the Parties. The Agreement shall become effective upon mutual agreement regarding the terms of dispute resolution.

Effectiveness of agreement clause with provision for effectiveness upon mutual execution

This clause requires mutual execution for effectiveness.

This Agreement shall become effective only upon execution by both Parties. The effectiveness of the Agreement will be retroactive to the date of the last signature.

This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

Last updated 12 Mar 2025