Executory

Executory describes a contract or agreement that has not yet been fully performed or completed. It signifies obligations that remain outstanding and require future action from one or both parties involved. These agreements entail a commitment to perform specific actions or exchange consideration at a later time, rather than immediately. A contract becomes executory from the time it's signed until all of its obligations are fulfilled, representing a period of pending action and unfulfilled promises. Essentially, it means "yet to be executed." The extent of the unfulfilled obligations determines how "executory" the contract remains.

Executory meaning with examples

• The home purchase agreement was executory; the buyer still had to secure financing, and the seller had to transfer the property title. Until both tasks were finalized, the contract maintained an executory status, representing open obligations.
• Before the band's concert, their performance contract with the venue remained executory. The band had yet to perform, and the venue hadn't provided the agreed-upon payment. Both held incomplete commitments, rendering the contract in this executory stage.
• An executory lease agreement existed between the landlord and the tenant. Though signed, neither party fully fulfilled their obligations, making the contract in an executory state. The tenant needed to move in and pay rent, while the landlord required to provide access and services.
• The employment contract was executory for the first month, with duties remaining to be fulfilled. The employee still had to complete training, and the company hadn't yet provided the employee their first pay, thus keeping it in an executory state.
• Due to ongoing project requirements, the construction contract with the builder was considered executory. The builder hadn't completed the building, and the homeowner hadn't fulfilled all payments, which meant that the contract was still executory.