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.
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Frequently asked questions about execution
No. A contract requires all parties to execute it. If you sign but the other party doesn't, there's no binding agreement. You've made an offer, but there's no acceptance. Don't start performing work based on a contract that hasn't been fully executed — you're doing it at your own risk.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.