Executory Contracts

Executory contracts are agreements in which some or all obligations are yet to be fulfilled by one or both parties. In the context of express contracts, which are clearly stated and agreed upon in writing or verbally, executory contracts remain in progress until all terms are completed. For example, if you sign a contract to buy a car where you agree to make payments over time, that contract is executory until you've paid the full amount and received the car. Once all responsibilities are met, the contract is considered executed.