The contract will still come into effect even if it is not performed. Because a contract can be established when both parties sign, seal or fingerprint it; it can also be established when one party performs the main obligations of the contract and the other party accepts it. A contract established in accordance with the law generally takes effect from the time of establishment. Therefore, after both parties sign, the contract is legally effective even if it has not yet been performed.

Legal Basis

Article 143 of the Civil Code

Civil legal acts that meet the following conditions are valid:

(1) The actor has the corresponding capacity for civil conduct;

(2) The expression of intention is true;

(3) It does not violate the mandatory provisions of laws and administrative regulations, and does not violate public order and good customs .

Article 490

If the parties conclude a contract in the form of a contract, the contract shall be established when both parties sign, seal or fingerprint the contract. Before signing, sealing or fingerprinting, one party has performed its main obligations and the contract is established when the other party accepts it.

Article 502

A contract established in accordance with the law shall take effect from the time of its establishment, unless otherwise provided by law or otherwise agreed upon by the parties.

In accordance with the provisions of laws and administrative regulations, if the contract should be approved and other procedures should be followed, the provisions shall be followed. If the failure to go through approval and other procedures affects the effectiveness of the contract, it will not affect the effectiveness of the contract's obligation clauses such as submission for approval and related clauses. If the party that should go through the application approval and other procedures fails to perform its obligations, the other party may request that it bear liability for violating such obligations.