An executory contract is: a. void if neither party has performed. b. One that has been completely performed. c. entered into but not fully performed. d. always unilateral in nature.

Question

Business

Donovan Kent

4 March, 14:15

An executory contract is: a. void if neither party has performed. b. One that has been completely performed. c. entered into but not fully performed. d. always unilateral in nature.

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Answers (2)

Know the Answer?

Edsel · Answer 1

The correct answer is letter "C": entered into but not fully performed.

Explanation:

Executory contracts are those in which the parties involved have pending most of the duties why the contract was signed. For instance, leases where both the delivery of the goods has not been made and the payment for those goods has not been given are executory contracts. When the goods are delivered, the contract stops being executory.

Carter Cross · Answer 2

c. entered into but not fully performed.

Explanation:

An executory contract is one that has not been fully performed or executed. Both parties in the contract still have obligations they have not met.

The obligations considered to make up executory contract are those that can result in breach of contract.

Note when only one party has outstanding obligations in a contract it is not an executory contract.