Executory vs Executed Contracts

The video tutorial explains the difference between executed and executory contracts. An executed contract is one where all material duties have been fulfilled, while an executory contract has outstanding material obligations. The tutorial provides an example of a house-building contract to illustrate these concepts, highlighting that minor unfulfilled details do not necessarily constitute a breach if the main obligations are met. It also discusses potential legal actions for minor unfulfilled details and the conditions under which a contract remains executory.

What defines an executed contract?

• All duties, including minor ones, are completed.

• The contract is still in progress.

• All material duties are completed.

• The contract is signed by both parties.

What is a key characteristic of an executory contract?

• All duties are completed.

• Some material provisions are yet to be performed.

• The contract is void.

• The contract is only partially signed.

Can a contract be considered executed if minor details are incomplete?

• No, all details must be complete.

• Yes, if both parties agree.

• No, it must be executory.

• Yes, if all material duties are fulfilled.

In the example of building a house, what was the minor detail left incomplete?

• Building the roof

• Waxing the floor

• Painting the walls

• Installing windows

What action can be taken if minor details are left incomplete in an executed contract?

• Ignore the incomplete details

• Cancel the contract

• Recoup costs for completing the minor details

• Sue for breach of contract