If you`re in sales, you`ll encounter a lot of legal jargon. One of the most important phrases you`ll need to know is “executed contract.”
An executed contract is a legal agreement between two parties that has been fully performed. This means that both parties have fulfilled their obligations under the contract, and the transaction is complete.
In sales, executed contracts are particularly important because they signify the successful conclusion of a sale. When you close a deal with a customer, you`ll want to make sure that you have a signed, executed contract in place.
Why is an executed contract important?
An executed contract is important for several reasons:
1. It protects you from legal disputes: An executed contract acts as proof that both parties have agreed to the terms of the sale. If there is ever a legal dispute, you can use the contract to demonstrate what was agreed upon.
2. It ensures payment: When you have an executed contract, you can be sure that you`ll be paid for your services or products. The contract should outline the payment terms and ensure that you receive the agreed-upon amount.
3. It sets expectations: An executed contract ensures that both parties are clear about their obligations under the agreement. This can help prevent misunderstandings and disputes down the line.
How do you create an executed contract?
Creating an executed contract can be a bit complex, but it`s important to get it right. Here are the basic steps:
1. Outline the terms of the agreement: Start by outlining the terms of the sale. This should include the price, payment terms, delivery dates, and any other important details.
2. Get the agreement in writing: Once you`ve agreed on the terms, put them in writing. Make sure that both parties sign the agreement.
3. Fulfill your obligations: Once the contract is signed, make sure that you fulfill your obligations under the agreement. This includes delivering any products or services, as well as receiving payment.
4. Keep a copy of the executed contract: Make sure that you keep a copy of the executed contract for your records. This can help protect you in case of any legal disputes.
In conclusion, an executed contract is a legally binding agreement between two parties that has been fully performed. In sales, it`s important to have an executed contract in place to protect yourself from legal disputes, ensure payment, and set clear expectations. By following these steps, you can create an executed contract that ensures a successful sale.