Execution Issues Once a Contract Has Been Formed
Contract execution is the process whereby the signing parties perform the duties mentioned in the contractual agreement. The terms mentioned in the contractual agreement contain certain guidelines to be kept in mind while executing the contract and in the performance of the contract. Only when these guidelines are followed, is the contract considered executed.
Contract Execution Term
The time period mentioned in the contract or the date on which the contract is signed is considered as the contract execution term. The obligations mentioned in the contract must be completed within this term.
However, if one of the parties is not able to complete the obligation within the stipulated period, the creditor makes a written claim. Following this, the debtor is required to perform the obligation within seven days. However, there may be an act of legislation, a rule, statute of code which could trump the intent of the parties and allows the contract terms to be circumvented as they are superseded by law.
In most cases, the debtor is free to complete the obligation before the term ends. The only exception to this is any act of legislation or any other condition stated by the creditor, executor or beneficiary of the contract.
Contract Execution Place
In most cases, the place of contract execution is stated in the contract itself. However, there may be cases where legislation does not determine the place of contract execution. In such cases, the contract execution place is the one where the acceptor has signed the contract. This is known as the place where the contract has been entered into.
In case of contract execution issues, the following exceptions are made:
- If the obligation involves allocation of building, land slot, other real estate or construction – the place where the property is located becomes the contract execution place;
- If the obligation involves delivery of goods (including transportation), then the location where the goods are transferred to the first carrier for final delivery, becomes the contract execution place;
- If the obligation involves provision of goods, that is, making them available to the creditor, then the place where the goods are manufactured becomes the contract execution place. If the creditor is aware of the place of storage of goods at the time when the obligation comes into existence, then this becomes the contract execution place;
- If the obligation involves money, the place of residence of the creditor at the time the obligation comes into existence – is the place of contract execution. If the place of residence or location of the creditor is changed before execution of the obligation by the debtor, then the new location or residence of the creditor is the place of contract execution. In this case, the creditor must bear the extra cost associated with change of execution place.
Contract Execution Method
Contracts are required to clearly state the method by which the parties are to perform the obligation, as decided by them individually. The performance must be in accordance with terms of the obligation as well as the legislative requirements.
In cases where there are no requirements and conditions, the requirements that are generally specified are applicable.
Keeping these terms in mind, contract execution issues are taken care of by providing appropriate exceptions.
If the exceptions are not present, and the contract is not followed, then the terms of the contract may be enforced through equitable relieve if the parties can not be made whole, or by compensating the aggrieved party with monetary damages or other remuneration which makes the victim of the breach whole again.