What Is It Called When You Sign a Contract

When you sign a contract, you are legally binding yourself to fulfill certain obligations outlined in the agreement. The act of signing a contract is known as executing it, and it is a crucial step in any business or personal transaction that involves an exchange of goods, services, or money.

There are several terms commonly used to describe the act of signing a contract, including:

1. Signing: The most straightforward term, signing refers to the act of putting your signature on a document. This is the final step in executing a contract and indicates your agreement to its terms.

2. Execution: This term refers to the entire process of signing a contract, including any necessary formalities such as notarization or witness signatures.

3. Enforceability: When a contract is signed, it becomes enforceable, meaning that both parties are legally obligated to fulfill the terms they have agreed to.

4. Ratification: This refers to the act of formally approving or authorizing a contract. In some cases, a contract may be ratified by a board of directors or other governing body before it can be executed.

5. Counter-signing: If a contract requires signatures from both parties, the second signer may be referred to as the counter-signer. This is often the case in employment contracts, where an offer letter must be signed by both the employer and employee.

In addition to these terms, there are also specific types of contracts that may have their own terminology associated with signing. For example, a lease agreement may require a tenant to sign a “lease offer acceptance” or a “rental agreement” before moving into a property.

No matter what terms are used to describe the process of signing a contract, it is important to understand the legal implications of executing an agreement. Before signing any contract, be sure to read it thoroughly and consult with an attorney if you have any questions or concerns. By doing so, you can ensure that you are fully aware of your obligations and can avoid any potential disputes down the line.