What is the primary characteristic of an 'executed contract'?

An executed contract is defined by the fact that all parties involved have completed their respective obligations as outlined in the agreement. This means that everything promised in the contract has been fulfilled, and there are no remaining duties or responsibilities for any parties involved. This characteristic distinguishes executed contracts from other types of contracts, such as executory contracts, where some obligations are still pending.

Understanding this concept is crucial in legal contexts, as it impacts the rights and obligations of the parties involved. For instance, when a contract is executed, it typically means that the agreement has been fully performed, and any disputes concerning performance or obligations may be more straightforward to resolve. Recognizing this clarity in an executed contract is important for businesses and individuals to manage their legal expectations and obligations effectively.