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An executory contract is a contract where both parties have ongoing obligations that have not yet been fully performed. Examples of executory contracts include leases, supply agreements, employment contracts, and licenses.
Executory Contracts. In an executory contract, the consideration is either the promise of performance or an obligation. In such contracts, the consideration can only be performed sometime in the future, hence the name executory contract. Here the promises of consideration simply cannot be performed immediately.
What are ?executory contracts? and ?unexpired leases?? An executory contract is a contract where both parties still have important things to do. An equipment lease is an executory contract. An unexpired lease is a lease that is ongoing like a car or truck lease or an apartment lease.
Executed contracts are contracts wherein the obligations of both parties have been completed. On the other hand, Executory contracts are contracts that have been agreed upon but have not been fully completed yet.
Executory refers to something (generally a contract) that has not yet been fully performed or completed and is therefore considered imperfect or unassured until its full execution. Anything executory is started and not yet finished, or is in the process of being completed in order to take full effect at a future time.