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An example of an executory contract is an apartment lease. The lessee is expected to continue to pay and the lessor is expected to continue to care for the property until the end date in the contract.
An executory contract is a contract that has not yet been fully performed or fully executed. It is a contract in which both sides still have important performance remaining. However, an obligation to pay money, even if such obligation is material, does not usually make a contract executory.
Assumption of an executory contract is accomplished by motion of the debtor-in-possession or trustee, subject to objection by other creditors and court approval.
Only executory contracts can be assumed, assigned, or rejected by the debtor; these options are not available for non-executory contracts under which the debtor is generally bound by its obligations.
If a contract is still in process, also called an incomplete or executory contract, both parties can decide to rescind the agreement at any point in the negotiations.
Once a court orders the parties to a contract to specifically perform the contract, the parties are no longer left with any material obligations under that contract, thereby making the contract non-executory.
Franchise agreements are themselves executory contracts. But they also encompass service contracts, equipment leases and real property leases.
If a contract is still in process, also called an incomplete or executory contract, both parties can decide to rescind the agreement at any point in the negotiations.
A contract under which unperformed obligations remain on both sides, or where both parties have continuing obligations to perform. For example, most leases or contracts for the sale of goods where the goods have not been delivered by the seller and the buyer has not paid, are executory contracts.
Executory Contracts means executory contracts and unexpired leases as such terms are used in 11 U.S.C. § 365, including all operating leases, capital leases, and contracts to which the Debtor is a party or beneficiary on the Confirmation Date.