Contract dates are among the most basic, fundamental aspects of any contract– cannabis or otherwise. Nevertheless, parties often mess them up or overlook them in potentially disastrous ways. Today, I want to look at a few key contract date issues and what they mean.
An execution date is the date on which a contract is executed. An effective date is the date on which the contract takes effect. They are often (but not always) the same date as the execution date. Sometimes, effective dates may be set in the past or future, depending on the context. A commencement date is the date on which certain obligations under an active contract commence. Commencement dates are used most frequently in lease agreements. Leases often take effect on an effective date, with a delay in occupancy of property until a future date (lease commencement date) and a delay in rent until a future date (rent commencement date). A termination or expiration date is the date on which the contract terminates. Sometimes contracts define a termination date (i.e., January 5, 2027). Sometimes they just set a fixed term (five years). In that case, the parties calculate the termination date on the side. A closing date is the date when
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