What is an executed contract?

An executed contract is defined as a contract that has been fully performed, meaning all parties involved have fulfilled their obligations as outlined in the agreement. This indicates that no further actions or considerations are required from either party; the terms of the contract are completely satisfied.

In legal terms, the execution of a contract signifies that all necessary formalities have been completed, and the contract is now enforceable in a court of law if needed. In the context of business and legal proceedings, understanding that an executed contract reflects a situation where all conditions have been met is essential for recognizing the closure of an agreement.

Other options such as a contract that is not fully carried out or one that is merely under negotiation do not correctly represent the concept of an executed contract, as those situations imply incomplete performance or unresolved terms. Similarly, a verbal agreement would not qualify as executed unless it has transitioned into a fully executed written form, as verbal contracts often lack enforceability without additional context or documentation.