Executory Contract

Definition: An executory contract has one or more obligations still to be performed. It can already be signed, valid, and binding.

Example

Buyer and seller sign a purchase agreement today, but payment and delivery of the deed are scheduled for next month.

Keep the distinction clear

Executory does not mean unsigned or invalid. It describes unfinished performance; executed describes completed performance in this comparison.

Related terms

Executed Contract · Valid Contract · Sale Contract

Keep studying

Valid, Void, Voidable, and Unenforceable Contracts

References: Cornell LII: executory

Pronunciation (US): ig-ZEK-yuh-tor-ee KON-trakt (capitals show stress)

Pronunciation reference: Merriam-Webster