Certified Residential Appraiser Practice Exam

An executed contract refers to a contract that has been fully performed by all parties involved. This means that each party has completed their obligations as outlined in the agreement, and there are no outstanding duties or responsibilities. In other words, the terms of the contract have been satisfied, and the contract is considered concluded.

The concept of an executed contract implies that the only time a contract can be marked as "executed" is when all specific terms have been adhered to without any remaining performance required. This is a key aspect differentiating it from an "executory" contract, where some or all terms are yet to be completed.

In contrast, an executed contract does not remain valid indefinitely, as it has been completed, and it cannot be altered without mutual consent since its original obligations have been fulfilled.