Legal Definitions - expiration date

An expiration date is a specific date or time when a legal right, offer, agreement, or privilege officially ends and is no longer valid or enforceable. It marks the deadline after which a particular condition or opportunity ceases to exist.

• Example 1: Business Contract Offer

  A software development firm sends a proposal to a potential client, offering to build a custom application for $50,000. The proposal explicitly states, "This offer is valid until December 31, 2024, at 5:00 PM EST." If the client does not accept the offer by that specific date and time, the software firm is no longer bound by the proposed terms or price.

  This illustrates the expiration date as the point when a specific offer ceases to exist, meaning it can no longer be accepted by the recipient.

• Example 2: Employee Stock Options

  An employee at a startup company is granted stock options, giving them the right to purchase 1,000 shares of the company's stock at a predetermined price. The grant agreement specifies that these options have an expiration date of July 15, 2028. If the employee does not "exercise" (purchase) these shares by that date, their right to buy the stock at the special price is lost, and the options become worthless.

  Here, the expiration date signifies when a contractual right (the option to buy shares) officially terminates and can no longer be exercised.

• Example 3: Promotional Rebate Offer

  A consumer purchases a new appliance that comes with a manufacturer's rebate offer for $100. To claim the rebate, the consumer must mail in a form and proof of purchase postmarked by March 31, 2025. If the submission is postmarked on April 1, 2025, or later, the manufacturer will reject the claim because the offer's expiration date has passed.

  This example demonstrates how an expiration date limits the period during which a specific promotional offer or privilege (the rebate) remains valid and can be claimed.