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What is the difference between an effective date and an execution date?

April 26, 2017effective execution

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What is the difference between an effective date and an execution date?

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A. The execution date is the date that the party signs the document. The effective date is the date that the agreement becomes effective and can be a specified date other than the date the agreement was signed. If no other date is specified, the contract is effective on the execution (signing) date.