Fully Executed Contracts
In business, a contract is an agreement between two or more parties to perform a specific task, exchange goods, or provide services. A contract becomes legally binding when all parties agree to its terms and sign it. Once a contract is signed, it is considered “executed.”
There are many types of contracts, but not all contracts are fully executed. A fully executed contract is a contract that has been signed by all parties and contains all the necessary elements to be enforceable in court. To be enforceable, a contract must have the following elements:
1) Offer: One party makes an offer to another party.
2) Acceptance: The offeree accepts the offer.
3) Consideration: Both parties exchange something of value (such as money or goods).
4) Capacity: Both parties must be legally able to enter into the contract (for example, they must be of legal age and of sound mind).
5) Legality: The purpose of the contract must be legal.
6) Signature: The contract must be signed by both parties.
Once a contract is fully executed, the terms of the contract cannot be changed without the agreement of all parties involved. If one party tries to change the terms of a fully executed contract without the consent of the other party or parties, this is called “breach of contract.”