Executory Contract

An executory contract is a written agreement where some or all obligations still need to be fulfilled by one or both parties. For example, if you sign a contract to buy a car, and the seller has to deliver the car while you have to pay for it, the contract is executory until both parties complete their responsibilities. It differs from an executed contract, which is where everyone has fulfilled their obligations. Executory contracts are common in many transactions, ensuring both sides adhere to their commitments until the agreement is fully carried out.