Contract Management

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  • 1.  Correct contract date

    This message was posted by a user wishing to remain anonymous
    Posted 2 hours ago
    This message was posted by a user wishing to remain anonymous

    Have a question regarding the correct contract date.

    As below example shows, I have 3 different dates. Which one should I use as the contract date:

    This MASTER SERVICES AGREEMENT is made as of 05/31/2024

    Signed by our Bank on 06/05/2024

    Counter Signed by TPSP on 06/07/2024

    I have been using the counter sign date, because I believe the contract is not enforceable until signed. Is that correct?

    Any feedback would be greatly appreciated.



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  • 2.  RE: Correct contract date

    Posted an hour ago

    Just my experience: an MSA is often written with an "effective date" defined in the contract, i.e. wording such as "...this MSA is effective as of 05/31/2024..." in which case the effective date of contract would be that date, regardless of executive signatures. The counter signature simply acknowledges agreement with that statement at the time of signature.

    If no effective contract initiation date is specifically noted in the content of the MSA, then I would agree with your choice to use the counter signature date as the effective date of the terms if only as a courtesy to the undefined effective term initiation.

    Note: this obviously can make for messy litigation if the effective date is not clearly defined and something unsavory occurred between 05/31/2024 and 06/07/2024.

    Just my opinion.


    Original Message


  • 3.  RE: Correct contract date

    Posted an hour ago

    Hi, 

    I do not believe you are correct. If the contract has an effective date, say January 1, even if one party signs January 10 and the other signs January 20, the contract obligations took effect on January 1, that being the effective date. This is especially critical when calculating the term. We use the Effective date, then if no Effective Date is provided, we look to the later of the 2 parties to sign. 

    I hope this helps.


    Original Message


  • 4.  RE: Correct contract date

    Posted an hour ago

    Stanley,

    Agreed on that point. the contract should have an effective date defined in the content of the contract, and best practice would have review and signatures occur before initiation of services to avoid any confusion.

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    Original Message


  • 5.  RE: Correct contract date

    Posted an hour ago

    Some prefer to use language such as "as of the date of the last signature" to avoid confusion.  


    Original Message


  • 6.  RE: Correct contract date

    Posted an hour ago

    Stanley is correct in the explanation of effective date.



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    Nicole Keefe
    SVP, Enterprise Risk Manager
    Risk Management Department

    445 Pine Avenue, Goleta, CA 93117
    Office Phone: 805-690-3255 | Cell Phone: 805-452-0379
    Email:nicole.keefe@communitywestbank.com
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    Original Message