Which term describes a contract that has been fully performed by all parties?

• A. Executory Contract
• B. Executed Contract
• C. Bilateral Contract
• D. Implied Contract

Answer: (B)

In contract law, the status of performance determines the correct term. When all promises have been fully performed by every party—goods delivered, payments made, duties completed—the contract is described as executed. It’s been completed and is discharged, meaning no remaining obligations exist under it.

If some duties remain to be performed, the contract is executory, not executed. The other two terms describe how a contract is formed or the nature of promises (a two-sided promise structure or formation by conduct) rather than its current performance status, so they don’t fit the scenario of a fully finished agreement.