Introduction

Executing a contract might sound like something to do with an executioner’s axe, but it’s actually a fancy way of saying you’re making a contract enforceable. It’s the final step of deal-making where everyone agrees that what’s on paper is good to go, and they sign off to seal the deal.

Read: Does a contract have to be in writing?

How it Works

Step 1: Signing the dotted line

The most straightforward part of executing a contract is the signature. Both parties need to put pen to paper to show they agree with everything stated. It’s like giving a thumbs up to say, "Yep, I’m in," or "You bet, I agree!"

Step 2: Witnesses and notarization:

Sometimes a signature alone doesn’t cut it. Depending on what your contract is about or the rules in your area, you might need a witness or a notary to confirm you really did sign it. This step adds a layer of "this really, really happened" to the whole process.

Step 3: Date and exchange:

Stamping a date on the contract when you sign it helps track when the agreement took effect. After everyone signs, the contract is typically exchanged between the parties, so each person has a copy. This exchange can happen in person or digitally.

Read: The top 5 contracts every small to medium-sized business should have

Conclusion

Properly executing a contract means that all the agreements can be legally enforced—if things go off the rails, the contract acts as a friendly reminder of everyone's duties and rights. Essentially, it ensures the contract isn’t just another piece of paper but a document that holds weight.

A well-executed contract solidifies your business dealings, ensuring that every agreement is set in stone—metaphorically, of course. It’s a fundamental part of making sure that everyone involved knows the deal is not just serious but also binding.

How Cobrief can help with contract review

Reading your business contracts can feel overwhelming as an owner-manager of a small to medium-sized business. That’s where Cobrief comes in. Cobrief helps business owners and operators review their business-to-business contracts for legal risks.

Upload your contract to Cobrief's AI contract review software, click review and you’ll get a list of all the risks, in plain English. This helps you decide whether to sign, negotiate or reject the terms of your contract, or hire a lawyer. Think of it as a heat map for your contracts.

Get started here.