Contract Glossary

Execution

Definition

Execution is the act of signing a contract. Once all parties have signed, or 'executed', the document, it's a binding agreement. The execution date is when the last required party signs.

In Practice

You send a contract to a client on Monday. You sign it immediately. They sign it on Thursday. The contract is 'fully executed' on Thursday, that's when it becomes binding. If the contract doesn't specify a separate effective date, Thursday is also when the terms kick in. Keep copies of the signed version with dates, you'll need them if there's ever a dispute about when obligations started.