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N Cal Attorney
N Cal Attorney, Attorney
Category: Business Law
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Experience:  Since 1983
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What is the meaning of legal term, This contract becomes effective

Customer Question

What is the meaning of legal term, "This contract becomes effective upon full execution"? If the contract was not signed by both parties, is it not effective?
Submitted: 6 years ago.
Category: Business Law
Expert:  N Cal Attorney replied 6 years ago.
Sounds exactly right. Full execution means signed by both parties.

"if the evidence shows that the signatures of other parties were required as one of the conditions of the completed agreement, it is incomplete and not binding upon those who sign until the others sign. From ¶ 53 of Roth v Garcia Marquez
Customer: replied 6 years ago.

That is the confusion.


The language does not specify what is considered full execution nor does it explicitly mention signatures, simply that the settlement contract will become effective upon full execution. Or is it full execution in the sense of both parties executing all terms of the contract?


Does it mean execution of both signatures as one defendant did not send copy of he signed contract so is it only binding for those who signed or not at all?

It is confusing.

Expert:  N Cal Attorney replied 6 years ago.
I read it to mean that the contract only takes effect when it is signed by all parties. In this context "execution" means signing the contract, and each party signing it is like a condition precedent, as in the Marquez case, so until the last party signs it there is no contract in force. IMHO

"This contract becomes effective upon full execution": That is an express condition:
]_Banner Entertainment, Inc. v. Superior Court (Alchemy Filmworks, Inc.), 72 Cal.Rptr.2d 598_95 CONTRACTS_ 95I Requisites and Validity_ 95I(C) Formal Requisites__95k35 k. Signature._Formerly 95k32_Cal.App.2.Dist.,1998_Under California law, when it is clear, both from provision that proposed written contract will become operative only when signed by parties as well as from any other evidence presented by parties that they both contemplated that their acceptance of contract's terms would be signified by their signing it, then parties' failure to sign agreement means that no binding contract was created, even though the party later sought to be bound by agreement indicated a willingness to sign it._

Customer: replied 6 years ago.

Thank you. One more question?


If this is the case, what is your opinion on the following?


Given the unsigned settlement agreement was meant to replace the first breached contract, if the latter is not in effect (Due to one missing signature), since money exchanged hands based on belief that this new settlement agreement would cure the previously breached one --does this mean we are back to the original contract legally if the one mising sgnature invalidates the new contract?


Considering money exchanged hands due to counting that the new contract was executed (While waiting for the other person's signed agreement), does this mean that we have reverted back to the original, previous breached contract or what are possibilities here in your personal or expert opinion? Whichever one is used on this forum?


What is the case IYHO, due to there being exchange of money (Between parties) that perhaps a judge might consider to be a cure to the previous breach, if the language in fact invalidates the settlement agreement making it invalid? I am going by different legal scenarios I have seen on legal shows.

What is your best interpreaion on this?

Is the cure to this error to try to obtain the ONE missing signature? If we cannot obtain that one signature, is the scenario above at play?

Expert:  N Cal Attorney replied 6 years ago.
If the last person will not sign then there is no settlement agreement and the settlement money has to be refunded- If the settlement agreement actually specifies it is only effective upon full execution that is a clear condition precedent and merely acting like the agreement was valid does not make it valid unless maybe maybe maybe to person who failed to sign accepted all benefits due under the settlement contract.

You may want to have a local attorney review both the contract and the settlement contract, you can get a free consultation with some of the Florida business attorneys lisetd by location at

I hope this information is helpful.
N Cal Attorney and other Business Law Specialists are ready to help you
Customer: replied 6 years ago.

Thank you. I understand what you are saying.


I will do this. Is there a less expensive service? I realize that you said FREE consultation but that only goes so far really in contrat agreements. LOL.


Thank you again for your time,



Expert:  N Cal Attorney replied 6 years ago.
Thank you for accepting my answer.

The lawyers who advertise a free consultation all offer one-