Executed agreement

Executed agreement
See also

Executed agreement - it is a contract that has already been signed and can be performed. Between the executed agreement and signed agreement there is one very significant difference. In the case of the former, the contract may be enforceable at the earliest upon signature of the contract. In the latter respect, the contract becomes only binding, but not necessarily enforceable. It is assumed that the agreement becomes an executed agreement on the basis of separate contractual provisions. This means that only when this point is reached will it be possible to determine the feasibility date of the contract. Nevertheless, it is assumed that in the absence of separate provisions, the agreement becomes executed agreement on the date of signing. It is worth noting that such agreements are difficult to evade and are usually difficult to undermine.

Executing agreements in face of global pluralism of law

Globalization has made a large number of legal systems intertwine. Different legal regulations and theoretical approaches to concluding and performing contracts require that states create their regulations in such a way that they are as transparent as possible for international business. The global law that arises in this respect should not be understood as a set of written laws that have been agreed upon by the states concerned (international commercial law would then be mentioned). These are all kinds of customs and rules of conduct adopted by the community [1].

Bearing in mind the above, also shaping the moment in which the agreement becomes executed, the agreement is strictly defined. As a rule, it is assumed in the global law that it will be enforceable at the earliest upon signing and upon direct expression of the fact that the parties to the legal relationship will approach the execution of contractual provisions immediately after signing the contract.

Executed agreements in laws of companies

Contracts are not only an instrument used to conclude commercial transactions. They can also be used to set up joint ventures, such as organizing an event or temporarily refraining from competing. However, there are specific types of agreements in trade that form the basis of the free market economy.

The above are agreements on the conclusion of a commercial company. According to the adopted rules, the articles of association become enforceable at the moment when the parties to the legal relationship make appropriate contributions to a given project and start running a business. Therefore, as it can be seen, the fact of recognizing the contract as execution is not a specified time period, but the fulfillment of a specific event (in this case, each of the partners has made appropriate expenditures on a given project)[2].

In addition, in legal doctrine there is such a concept that in the case of companies with a proven track record of cooperation, a contract may be concluded by delivering goods to the registered office of the other entrepreneur when the other entrepreneur does not directly oppose the delivery of such goods. Then it is considered that the contract became executed at the moment of accepting the delivery of these goods [3].

As a result of the above, there are three moments when a contract is executed, the agreement is executed:

  • supply of goods
  • making cash or in-kind contributions
  • implicit acceptance of the offer and automatic conclusion of the contract

Footnotes

  1. Bradford, B., Hough, M., Jackson, J., Myhill, A., Quinton, P., Tyler, T.R. (2012), P. 1051-1071
  2. McLeod-Heminway, J.(2015), p.812-820
  3. Zelek, M., (2014), p.531-554

References

Author: Melania Mazur