5 - Term

This Agreement shall become effective on [DATE] and shall remain in full force and effect until [DATE], unless earlier terminated in accordance with the terms of this Agreement.

Plain English Explanation of the Term Clause (U.S. Legal Standards)

This clause sets the duration of the contract, stating:

• When the contract starts – the effective date when it legally takes effect.

• When the contract ends – the expiration date when the contract automatically terminates.

• The contract remains in force for the full term unless it is terminated early under specific conditions outlined in the termination clause.

Key Takeaways:

✔ Defines the contract’s binding duration, ensuring both parties understand their obligations. ✔ Allows for early termination if specific conditions are met. ✔ Provides certainty for planning and managing commitments over the contract’s term.

This explanation ensures clarity and compliance with U.S. contract law, making it easy to understand how long the contract will remain in effect.