The entry into force of the contract means that the established contract is legally binding, and the validity of the contract depends on whether it meets the entry into force conditions stipulated by law.

Article 44 of the Contract Law stipulates: "A contract established according to law shall take effect upon its establishment."

The effectiveness of the contract includes two situations:

First, a contract established according to law shall take effect upon its establishment. This is a general stipulation on the effective time of a contract, that is, if there are no special provisions in laws and administrative regulations and the parties agree, the time when the contract is established is the effective time of the contract.

Second, if the approval and registration procedures are required by laws and administrative regulations to take effect, (such as contracts concluded in accordance with the Law on Enterprises with Foreign Investment, mortgage contracts for mortgage registration, etc.) will take effect from the date of approval and registration. Three, the parties agreed in the contract, the effective time of the contract, from its agreement.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.