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What is an executory contract? An executory contract is an ongoing agreement between two parties who are responsible for completing certain obligations over a set period of time. They are written agreements that ensure each party is clear about their own and the other's responsibilities.
An executory contract is one where the debtor is a party but neither party has fulfilled its obligations under the contract. An unexpired lease is a common example of an executory contract ? the lessor has not given its leasehold for the full term of the lease yet, nor has the debtor paid for the full term.
A lease to which the debtor is a party and whose term has not expired. A debtor may assume, or assume and assign, only those leases that are unexpired.
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.
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.