ABSTRACT
The Contract shall become effective as from the date of execution hereof by the buyer and the builder. A related issue, which is again of considerable practical importance in a volatile market, is whether either party may waive part or all of the requirements of an Effective Date clause so as to bring the contract either closer to, or into, effect. The buyer and/or the builder may, for a variety of reasons, be unable or unwilling to commit themselves unconditionally to the contract at the time of its signature. The key issue is the extent to which either the buyer or the builder is entitled to rely upon the provisions of an Effective Date clause where it has been responsible for the circumstances causing the contract to fail. The employer in due course exercised the right with the consequence that the performance bond and securities could no longer be issued in the forms prescribed in the contract.
