When is a contract described as "Executed"?

A contract is described as "executed" when all parties have fulfilled their obligations as stipulated in the agreement. This indicates that the terms of the contract have been completed, and both parties have satisfied their responsibilities under the contract's provisions. In practical terms, this means that all promised actions, such as payment and the transfer of goods or services, have been completed, leading to the conclusion of the contractual relationship.

Understanding what constitutes an executed contract is crucial as it signifies the successful completion and closure of the agreement, as opposed to a contract that remains open or is still in the process of fulfillment. This distinction is important in real estate transactions, where completion of obligations can affect ownership rights, financial responsibilities, and legal standings among parties.