What is an Executed Contract?

An executed contract refers to a contract whose terms have been completely fulfilled by all parties involved. This means that all conditions, obligations, and promises outlined in the contract have been met, and therefore, the contract is effectively complete and enforceable. In legal terms, an executed contract signifies that the parties have finished performing their respective duties as stipulated in the agreement.

In contrast, a contract that is legally binding but not finalized would still be in a state of obligation without completion. A contract that is currently being negotiated implies that the parties have not yet reached an agreement, the terms are still under discussion, and no binding commitments have been made. On the other hand, a contract that includes contingencies still has unmet conditions that need to be satisfied for it to be fully executed.

Understanding the concept of an executed contract is crucial for anyone involved in real estate or mortgage transactions, as it clarifies when parties can consider their deal concluded and enforceable.