DECA Marketing Cluster Practice Exam

When is an agreement considered to be executed?

1. When it is verbally agreed upon

2. When signed by all parties involved

3. When one party initiates changes

4. When it is submitted for legal approval

The correct answer is: When signed by all parties involved

An agreement is considered to be executed when it has been signed by all parties involved. This signifies that all parties have mutually reached an understanding and are legally bound by the terms outlined in the agreement. The act of signing indicates consent and formal acceptance of the agreement's provisions, making it enforceable in a court of law. While verbal agreements can hold weight in certain contexts, they lack the formal documentation that a signed agreement provides. Changes initiated by one party do not constitute execution, as all parties must agree to any alterations for the agreement to be valid. Additionally, submitting an agreement for legal approval does not execute it; instead, it is a step toward validation and may be required for certain types of agreements. Thus, the execution of the agreement is firmly established upon the signing by all involved parties.