ContractsQuestion 53 of 120

An 'executory' contract is one in which:

a.Something remains to be done by one or both parties
b.All obligations have already been fully performed
c.The contract has been declared void by a court
d.No consideration was ever exchanged

Explanation

An executory contract is one that has been formed but not yet fully performed, such as a signed purchase agreement before closing. Once all parties complete their obligations, it becomes an executed contract. This distinction matters for determining remaining duties.

Practice all 120 questions free — no signup required.

Related questions on this topic

Last reviewed: · editorial process

PrepPass Editorial Team · Verified against Florida Real Estate Sales Associate Licensing Exam · How we review
Report