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All business contracts must contain the essential elements of an agreement. The essential elements include consideration, offer and acceptance, a legal purpose, capable parties and mutual assent. Consideration means something of value must be exchanged.
A sales agreement for an appliance, for example, would be an executed contract. Once the contract has been entered into, the appliance will be delivered immediately. A good example of an executory contract would be a contract with a home builder to construct a house.
Execution can mean two things: one, to complete a legal document, and two, to fulfill its requirements through signing and sealing the agreement. Executing contracts mean the people involved sign the agreement. Both parties must fulfill their obligations for a real estate contract to become executed.
An executed contract is a signed contract that establishes a contractual relationship between two or more parties. Once the contract is fully signed, each party agrees to uphold the legal obligations they agreed on within the written agreement.