What is an executed contract?
An executed contract can mean one of two things. (1) a contract that has been signed by all parties or (2) a contract where all the obligations are fully performed.
Typically in business sales related contracts, executed refers to the contract being fully signed and now legally enforceable. In industries like real estate, executed means fully completed with all obligations in the contract fulfilled by all parties.
Depending on the context in which executed is used, it’s generally possible to tell which is meant. It can be worth seeking clarification if you’re unsure.
Alternatives to the using the phrase executed
If you’d like to completely avoid ambiguity by using another term, we suggest using these alternatives instead:
- Fully Signed and Effective – Contract has been signed by all parties and is now legally enforceable
- Fulfilled – All obligations have been met by all parties
Good examples of both definitions
We’ve listed industries and contract types below that typically follow one or the other meaning.
|Executed as Fully Signed
|Executed as Performed
|Technology – Software Licensing
|Construction – Completion of work contracts
|Sales – Purchase Orders
|Real Estate – Closing a property sale
|Finance – Loan Agreements
|Publishing – Delivery of final script
|Legal Services – Retainer Agreements
|Event Planning – Post-Event Settlement
|Consulting – Consulting Agreements
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