Ohio Surety Bail Agent Practice Exam

Which of the following is an example of an "executed" contract?

1. A contract that is still being negotiated

2. A lease that has been fully performed

3. An agreement subject to future conditions

4. A non-disclosure agreement yet to be signed

The correct answer is: A lease that has been fully performed

An executed contract refers to an agreement that has been fully performed by all parties involved. This means that all terms and conditions of the contract have been completed. In the given scenario, a lease that has been fully performed signifies that both the tenant and the landlord have completed their obligations as outlined in the lease agreement, such as the tenant paying rent and the landlord providing the rental property. On the other hand, a contract that is still being negotiated has not reached completion, as the parties have yet to finalize the terms. An agreement subject to future conditions indicates that fulfillment depends on certain occurrences that have not yet happened, which means it cannot be considered executed. Lastly, a non-disclosure agreement that has yet to be signed is not executed because the parties have not confirmed their agreement and intentions by signing the document. Thus, the lease that has been fully performed exemplifies a completed and binding executed contract.