Contract Glossary
Executed Contract
Definition
An executed contract is an agreement in which all parties have fulfilled their obligations, every required action has been performed and every condition has been satisfied. The term also has a second meaning: a contract that has been signed (executed) by all parties, making it legally binding. Context determines which meaning applies. The opposite of an executed contract is an executory contract, where one or more obligations remain to be performed. Understanding this distinction matters for bankruptcy proceedings, property transactions, and determining when contractual duties end.
In Practice
A freelance graphic designer signs a contract to create a company's logo for $5,000. After the designer delivers the final logo files and the company pays the full amount, the contract is executed, both sides have completed their obligations. Until that point, it was executory. If the designer delivered the logo but hadn't been paid yet, the contract would be partially executed (designer's obligation complete) and partially executory (company's payment obligation outstanding).
Example Clause
This Agreement shall be deemed fully executed upon signature by all Parties and shall remain in effect until all obligations hereunder have been performed. Upon full performance by all Parties, this Agreement shall be considered executed and complete, subject only to those provisions that by their nature survive termination.
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