A contract that has not been fully performed is called what?

A contract that has not been fully performed is called what?

• A. Executed
• B. Executory
• C. Voidable
• D. Bilateral

Answer: (B)

The concept being tested is the status of a contract based on performance. An executory contract is one in which performance is due in the future; not all obligations have been fulfilled yet. When a contract is not fully performed, such as a purchase agreement where the buyer hasn’t paid or the seller hasn’t delivered title or goods, it remains executory. Executed contracts are those in which all terms have been completed by both sides. A contract that is voidable is one that may be rescinded due to some defect, and bilateral simply refers to an agreement with mutual promises, not to its performance status. Therefore, the best term for a contract that has not been fully performed is executory.

The concept being tested is the status of a contract based on performance. An executory contract is one in which performance is due in the future; not all obligations have been fulfilled yet. When a contract is not fully performed, such as a purchase agreement where the buyer hasn’t paid or the seller hasn’t delivered title or goods, it remains executory. Executed contracts are those in which all terms have been completed by both sides. A contract that is voidable is one that may be rescinded due to some defect, and bilateral simply refers to an agreement with mutual promises, not to its performance status. Therefore, the best term for a contract that has not been fully performed is executory.