What is Contract Execution?

Contract execution is the last step in the pre-signature phase of a contract’s lifecycle, where all required parties sign the agreement. When execution happens physically we call it a ‘wet signature’. As with most contracts today, they can also be executed digitally via electronic signature platforms like Docfield. We call this an e-signature. 

At Docfield, we have also built a valuable integration with our partners at PKISigning. They offer the most advanced e-signature solution in the market. It is eIDAS compliant, which organisations in more regulated industries (like accountancy) require. 

Why is contract execution important?

The execution of a contract is what makes the document legally binding. It formalises the intentions of the involved parties. Without proper execution, even a well-drafted contract may lack legal standing. 

This phase is also critical from an operations and compliance perspective:

• It triggers performance timelines, obligations, and payment schedules
• It ensures enforceability of terms
• It creates a formal record for audit, reporting, and governance

With CLM tools like Docfield, execution is tracked, timestamped, and securely stored — leaving no room for ambiguity.

What are the steps involved?

In a well-established execution process, a signature does not happen in isolation. This is what errors occur, wrong versions are signed, and contracts get lost. 

1. Final approval – all internal sign-offs have been received before it goes out for signatures.
2. Signature collection – parties sign the contract in order or simultaneously. With Docfield, you can do either. 
3. Version control – the signed version is confirmed as final and automatically archived in the system.
4. Storage – The executed contract is added to the contract repository.

Notification – Relevant stakeholders are alerted that the contract is now in effect.