Executed

In one sentence

A contract in which both parties have fully performed all their obligations.

Plain English

An executed contract is one where all the work is done. Both parties have completed everything they promised to do, and nothing remains but memory. Once you buy a coffee and the barista hands it to you, that contract is executed—you paid, they delivered, it's finished. Executed contracts can still be breached if one party fails to perform their part after the fact (like if the coffee was poisoned).

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Example

You hand a cashier $20 for a shirt, and they give you the shirt and your change. That contract is executed because both of you have done what you promised—you paid and they delivered the goods.

Used in a sentence

“Once the parties exchanged payment and goods, the contract became executed.”

Related terms

Executory

A contract in which one or both parties still have duties to perform in the future.

Breach

A failure to do what a contract requires, such as not paying or not delivering.

Performance

The act of doing what a contract requires, such as delivering goods or paying money.

Implied Contract

A contract where the parties' intent to be bound is shown by conduct rather than explicit words.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

Offeror

The person who makes an offer to enter into a contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.