A contract in which one or more obligations remain to be performed by the parties.
Why Executory Contract matters on the exam
This term belongs to Contracts. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Executory Contract
Every Freehold question shows why the right answer is right — and cites its source.
A signed purchase agreement in which the buyer's financing and inspections are still pending is best described as:
An executory contract
An executed contract
A voidable contract
An implied contract
Show answer & explanation
An executory contract — An executory contract is one in which obligations remain to be performed, such as satisfying financing and inspection contingencies before closing. Once fully performed at closing, the contract becomes executed.
Source: PSI National Real Estate Exam Content Outline §7 Contracts
Which pair correctly matches a contract type with its description?
Voidable / lacks one or more essential elements and has no legal effect whatsoever
Executory / some obligations under the contract remain to be performed
Void / valid on its face, but one party has the legal right to cancel it
Bilateral / only one party makes a promise
Show answer & explanation
Executory / some obligations under the contract remain to be performed — An executory contract is one in which one or more parties still have obligations left to perform, such as before closing on a real estate sale.
Source: PSI National Real Estate Exam Content Outline §7 Contracts
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