For example, suppose John Doe rents a house to Jane Smith. The lease has a term of 12 months and ends on May 31, 2015. This date is stated in the contract and legally binding, so it is a date. Date on which action is to be taken. It is legally binding. A specific date is a legal term that indicates a date by which an action or process must take place or be completed. A specific date is the exact date on which a particular action must take place under a particular contract. The date is important information because it is legally binding on those involved. Some data makes deadlines, expiration dates and other data very clear to everyone involved. As they are legally binding, failure to comply within the specified date often entitles you to some form of compensation or remedy. Date Some features are built into standardized derivative contracts such as options and futures contracts that expire at a specific date and time. Since these clauses are considered legally binding, non-performance within the specified date entitles the injured party to damages or other legal rights.
In the case of trading on an exchange, these errors would likely be corrected by the exchange or clearing house used. In the case of transactions that take place exclusively between private parties, the dispute can be resolved through mediation or by the courts. In U.S. options markets, the third Friday of every month is often used as the expiration date for options. However, different options markets will have different practices in this regard. For European-style options, the expiration date is the only time an option can be exercised. In this sense, the date of a European-style option is very clear. A common example of a particular contract is a lease agreement between a tenant and a landlord. Leases have a start date and a termination date, which usually spans 12 months, sometimes with the option to extend or renew the lease for another date. If a tenant does not move out by the date the lease is terminated, they can be evicted and prosecuted. American-style options, on the other hand, are a bit vaguer.
In this case, the option holder may exercise his contract at any time between the purchase of the option and the expiry date of the option. Nevertheless, the expiry date is a fixed date that represents the last possible opportunity for the option holder to exercise the option. Often, contracting parties need to know the exact date or when the terms of the contract will be concluded. This date, called the specific date, is an important part of any contract, as it allows the parties to objectively verify that the conditions of the contact have been met. Supported by Black`s Law Dictionary, Free 2nd ed., and The Law Dictionary. In the world of options and derivatives, expiration dates are specific dates. For example, let`s say you buy a call option on Intel stock (INTC) with an exercise price of $40 and an expiration date until April 16. This option would give you the right to buy 100 shares of Intel at a price of $40 by April 16 (the right to do so, of course, is only valuable if Intel is trading above $40 per share). Note that the expiration date always falls on the third Friday of the month in which the option expires as expected. In rare cases, a specific date may not be present. For example, Russian-style options, which are rarely traded in practice, have no expiration date.
Instead, the option holder can wait indefinitely before deciding to exercise the option. Contracts with certain features contain collateral that is valuable to investors and can therefore have a premium over contracts without those features. Meeting deadlines also allows for more accurate coverage, as expectations for the delivery of goods or goods can be known in advance.