Experience the Assurance of Fully Fulfilled Contracts
Executed Contract: A contract whose terms and conditions have been completely fulfilled by all parties involved.
Once all parties have signed the contract and the transaction has been closed under the stipulated terms, the contract is considered an executed contract.
The Significance of Executed Contracts
Executed contracts cement the successful agreements between parties, ensuring all stipulations have been accurately and completely met, thus preventing potential disputes.
Example of an Executed Contract
Let’s say Jane agreed to purchase Greg’s car for $10,000. Both agreed on specific payment terms and conditions for the transaction. Upon Jane’s payment and Greg’s transfer of the car ownership to her, fulfilling all agreed-upon obligations, this agreement becomes an executed contract. Both Jane and Greg have performed their roles as per the original agreement, solidifying a mutually beneficial transaction.
Enhancing Understanding Through More Examples
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Real Estate: Once a buyer and a seller complete all required steps of a property transaction, including transfers of title and payment, the real-estate contract is executed.
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Service Agreements: A contract between a freelancer and a client over a web design service is executed once the freelancer completes the project and the client has made the full agreed payment.
Frequently Asked Questions
What is the difference between an executed and an executory contract?
An executed contract is fully completed with all terms met, while an executory contract still awaits performance by one or more parties.
Can an executed contract be revised?
Generally, once executed, contracts can only be revised through mutual consent and potentially necessitate a new agreement reflecting the amended terms.
What happens if a party does not fulfill their obligations in an executed contract?
Non-fulfillment of obligations post-execution can lead to breach of contract claims, legal disputes, and the requirement for remedies as stipulated within the contract or by law.
Why is an executed contract important?
Executed contracts provide clarity and finality in agreements, establishing secure and enforceable obligations binding all parties involved.
Related Terms: binding contract, contract performance, completion, transaction fulfillment, agreement.
