In contract law, what does "executed" mean?

In contract law, the term "executed" refers to a contract that has been fully performed, meaning all parties involved have fulfilled their contractual obligations. When a contract is executed, it indicates that the terms outlined in the agreement have been completed, and there are no remaining duties or responsibilities left outstanding. This concept is crucial because it distinguishes between contracts that are merely signed (which might still have obligations to fulfill) and those that have been completely carried out.

For example, in the context of a real estate transaction, an executed contract would be one where, for instance, the buyer has paid the agreed purchase price, and the seller has transferred ownership of the property. Thus, the status of the contract as "executed" confirms that it has reached its conclusion in terms of performance, as opposed to simply having been signed or agreed upon.