When are written agreements effective?

• A. After formal board approval
• B. Upon submission
• C. Only after a signed hard copy is received
• D. After a 30-day waiting period

Answer: (B)

The main idea is that a written agreement becomes effective when it is submitted for consideration, because submission marks the intentional start of the agreement and triggers its enforceability in the workflow. When a document is submitted, all parties know there is a proposal to be used, and the terms can begin to apply once accepted and processed. While board approval, a signed hard copy, or a waiting period may be part of the formalization or governance surrounding the agreement, they do not by themselves establish the moment the agreement actually becomes binding. Board approval is a governance step that may come after submission, a signed hard copy is a traditional means of evidencing assent but modern practice can rely on submission or electronic execution, and a waiting period is an arbitrary delay not typically how the effective date is determined. Therefore, the act of submission is the best indicator of when the written agreement becomes effective.