Legal Definitions - executed contract

An executed contract is a legal agreement where all parties involved have fully completed their respective duties and obligations as outlined in the contract. In essence, it means the contract has been performed, and nothing further remains to be done by any party under its terms.

Here are some examples to illustrate this concept:

• Example 1: Retail Purchase

  Imagine a customer walks into a bakery, selects a loaf of bread, pays the cashier the stated price, and then leaves with the bread. In this scenario, an executed contract has occurred. The customer fulfilled their obligation by paying, and the bakery fulfilled its obligation by providing the bread. Both parties have completed their part of the agreement.

• Example 2: One-Time Service

  A homeowner hires a window cleaning service to clean all the windows in their house on a specific day. The service company arrives, cleans all the windows to the agreed standard, and the homeowner then pays the company the agreed-upon fee. Once the windows are cleaned and the payment is made, the contract for that specific service is considered executed because both parties have fully performed their duties.

• Example 3: Short-Term Rental

  A traveler rents a car from a rental agency for a weekend trip. They sign the rental agreement, pay the rental fee, and pick up the car. At the end of the weekend, they return the car to the agency in the agreed condition, and the agency confirms no additional charges are due. At this point, the rental contract is executed because the traveler has returned the car and paid, and the agency has provided the car for the agreed period and accepted its return.