Executory Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Executory, written in plain English, along with examples of how it is used.
What is Executory?
adj. Something which has not been performed or done yet. For example: an executory contract is a contract in which part, or all of the necessary performance has not been accomplished.
History and Definition of Executory
Executory refers to something that has not been done yet or is yet to happen. In legal terms, an executory contract is a type of agreement in which one or more parties have yet to fulfill their obligations. These agreements often involve future events, such as the delivery of goods, services or money. Typically, a contract is considered executory until all parties have fulfilled all their obligations.
An executory contract is an agreement in which one or more parties have yet to perform their obligations under the contract. This means that part or all of the performance required by the contract has not been accomplished. For instance, if a company signed a contract to receive office supplies from another company but has not received a delivery of office supplies, the contract in question is executory. Once the obligations are met, the contract becomes executed.
Examples of Executory
- A construction company signs an executory contract with a client to complete building a house. Until the construction is completed, the contract is executory.
- An employee signs an employment contract that becomes executory until they start working at their new job.
- An agreement is signed for the purchase of a car. Until the car is delivered to the buyer, the contract remains executory.
Legal Terms Similar to Executory
- Executed Contract - A contract that has been fully performed by all parties involved.
- Breach of Contract - A failure to perform all or some of the obligations under the contract.
- Unilateral Contract - A contract in which only one party is obligated to perform.