What is meant by an executed contract?

An executed contract refers to a contract that has been fully performed by both parties involved, meaning that each party has fulfilled their obligations as outlined in the contract. This indicates that all terms and conditions of the agreement have been met, and therefore the contract is considered complete.

When a contract is executed, there is no further action required by either party, and the terms are binding and effective. This is different from a contract in negotiation or one that is still ongoing, where parties may still be exchanging performances or may have obligations left to fulfill. It is also distinct from a contract that may require court enforcement, as an executed contract is one where both parties have adhered to their responsibilities, reducing the need for legal intervention. Additionally, while an executed contract does have legal standing, not all contracts with legal standing are executed, as they may still be in the process of performance.