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[arve url=”https://youtu.be/Thc01Y-DjBM” title=”Executed vs Executory Contracts” description=”This video explains what is an Executory Contract and what is an Executed Contract. ” /]

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What are executed contracts and executory contracts?

An executed contract is one in which the parties have performed their duties under the contract. An executory contract is one in which the parties have not yet performed their obligations under the agreement.

Example: I enter into a contract with you. Before I have fully performed the contract, it is executory. Once performed, the contract is executed.

Discussion: Why do you think it is necessary in business to characterize contracts are executory versus executed?