Contract Execution
When parties have reached an agreement in principle and are ready to commit to the terms of the contract, they will execute the contract. Execution is the process of making the contract legally binding on both sides. This usually involves each party signing the contract, but it can also be done by exchanging emails or other electronic communications that confirm each party’s agreement to be bound by the terms of the contract.
After a contract has been executed, it can be difficult or impossible to change its terms. That’s why it’s important to make sure that both sides are clear on what they’re agreeing to before execution. If there are any questions or uncertainties, they should be addressed before signing. Once the contract is signed, both parties are legally obligated to uphold their end of the bargain.