Which type of contract is considered executory?

An executory contract is one in which the terms have not yet been fully performed by one or more parties involved. This means that there are outstanding obligations that still need to be fulfilled. For instance, if a buyer has agreed to purchase a property but has yet to make the payment or if a seller has agreed to provide repairs but has not yet completed them, the contract remains executory until all terms are satisfied.

In contrast, a contract that has been fully performed would no longer be executory, as all parties have completed their obligations. A contract made without formal agreement typically lacks the enforceability needed to be recognized as a contract, which does not pertain to executory status. Lastly, a contract that carries no legal standing is void and therefore cannot be executory since executory contracts must be valid for the obligations to exist.