What does executed agreement mean

Executed contracts are easy to identify in real life. A person agreeing to pay for a particular service or participating in it, either by signing a physical or an online contract, is in a situation where an executed contract is created. By agreeing to the terms of the document, whether it is implied or it is explicitly agreed upon, the contract is executed accordingly. Also, the term applies to a contract that has been completely fulfilled and it has come to a conclusion.

This is the case, for example, of lease contracts. Usage explanations of natural written and spoken English. Grammar Thesaurus. Word Lists. Choose your language. My word lists. Tell us about this example sentence:. The word in the example sentence does not match the entry word. The sentence contains offensive content. Cancel Submit. Your feedback will be reviewed. In this sense, the date of execution is the date on which all parties' signatures appear on the contract. It's the contract's starting date.

A contract is said to have been executed when both parties have completed their obligations. In the case of an executed contract in real estate, that milestone comes at closing, when the documents are signed by both parties. Until payment and title change hands, the contract is merely "executory" — capable of being executed at some point in the future.

The effective date of a contract agreement is determined by the final date of acceptance, on which both the buyer and seller have agreed to all terms of the contract and signed it — or in other words, when the contract is signed by both parties it is a fully executed contract, according to Texas Real Estate. A contract needs more than signatures to be valid. First, there must be a "meeting of the minds" that signifies mutual consent, that is, the buyer and seller must agree on the purpose and terms of the contract.