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An executed agreement is essentially a legal document that has been signed by the people necessary for it to be made effective. If there is a contract between two people, for example, that indicates a service that needs to be provided by one party to the other, then it usually needs to be signed by both people. Once that contract is signed by both of them and any witnesses or additional parties necessary, then it is considered an executed agreement. This should not be confused with an effective agreement, which is a document that has come into effect and must be legally upheld.
Many different types of documents and legal paperwork can be considered an executed agreement, once they are signed. Contracts between two parties are among the most common forms of agreements, which can provide the terms and conditions under which certain services or products are afforded to each party. A rental lease between a property owner and renter, for example, is usually a contract that indicates the timer period of renting, payment by the renter, and any conditions and options imposed upon both parties. Once the rental contract is signed by the renter and owner, as well as any necessary third parties, then it is an executed agreement.
The time when a contract or other document becomes an executed agreement is often referred to as the execution date. When a document is executed is not necessarily the same as the effective date for a contract or agreement. The effective date is the moment that the document comes into effect, or when it is enforced and binding between whatever parties are involved in the agreement. An executed agreement is simply signed by those individuals who are bound by the agreement, and by any witnesses that may be legally required for some documents.
Once a document reaches its effective date, then it “goes into effect” and becomes binding for both parties. This date is often indicated in the terms of the document itself, and it is possible that an executed agreement is effective upon the moment that it is signed. A rental agreement, on the other hand, is executed once it is signed, but might not be effective until the start of a certain month or other event in which the renter begins occupying the space. These terms and dates are important, since one party in an executed agreement may believe it to be effective immediately, even though the terms of the contract indicate effectiveness at a later date.
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