Executed Contract
A contract where all parties have signed the document and all obligations have been fully completed and performed. This means both the signing of the agreement and the fulfillment of all contractual duties have occurred.
Example
“Once the final walkthrough was completed and keys were handed over, the purchase agreement became an executed contract.”
Memory Tip
Think 'executed = completed' - all parties have carried out their duties completely.
Why It Matters
Understanding when a contract is fully executed helps parties know when their legal obligations are complete and when they can expect to receive the benefits of the agreement. This clarity prevents disputes about ongoing responsibilities or performance expectations.
Common Misconception
Many people confuse an executed contract with a signed contract, but execution requires both signatures and complete performance of all contractual obligations.
In Practice
A real estate purchase contract becomes executed when both parties have signed, the buyer has paid the full purchase price, the seller has delivered the deed, and the keys have been transferred. Until all these steps are complete, the contract remains executory even though it was signed.
Etymology
From Latin 'executus,' meaning 'carried out' or 'completed,' derived from 'exsequi' meaning 'to follow through to the end.'
Common Misspellings
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