execution
Definition
Execution has two common meanings in business law. First, it means the act of signing a legal document to make it officially valid and binding. Second, it refers to a court-ordered process where a creditor can seize your assets or money to satisfy an unpaid debt judgment against you.
Example
If you lose a lawsuit and the court enters a judgment against your business, the winning party can seek execution against your bank account, meaning they can legally take money directly from it to collect what you owe.
Watch Out
Never sign a contract without reading it fully, because execution of that document means you are legally bound to everything written in it.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.