contracts

executory contract

An executory contract is one in which one or more parties still have obligations left to perform. A signed purchase agreement is executory from the time it is signed until closing, when the deed is delivered and the price paid. Once all terms are fully performed, the contract becomes executed. An installment land contract remains executory until the final payment.

Exam tip
Do not mix up executory (still being performed) with executed (fully performed) or with execute meaning simply to sign.
Example
Buyer and seller sign a contract on March 1 with closing on April 15. Between those dates, the contract is executory.

Related terms & state variants

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Last verified: 2026-10-23