What is the definition of contract execution?

The definition of contract execution is accurately described as the formal signing of a contract, which makes it legally binding for all parties involved. This process is essential because, once the contract is executed, the obligations and rights outlined within it take effect, creating a legal framework that governs the relationship between the parties.

Contract execution involves the final approval and agreement of the terms that have been negotiated and discussed prior. It's not simply about drafting or reviewing the contract; it requires the actual act of signing it, which indicates that all parties consent to the agreements stipulated.

Other options focus on different stages of the contracting process. The preliminary review and negotiation stages are critical to developing the contract, while contract monitoring occurs after a contract is signed and is vital for ensuring compliance and performance. However, these actions do not fulfill the formal requirement necessary for contract execution.