Commencement and duration
A boilerplate commencement clause and duration clause providing different options for drafting the commencement and duration of a commercial agreement (or parts of it). The clauses address how to define when an agreement starts, offering alternatives such as a fixed date, a staged commencement or a deemed commencement date. For the agreement's term, there are several possible structures presented. Options include a straightforward fixed term, an initial term that rolls into an indefinite period and various automatic renewal mechanisms for single or multiple extended terms. The drafting notes highlight important legal considerations associated with backdating contracts and explain key legal implications, such as what happens if an agreement is silent on its duration and how termination by reasonable notice may apply.
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