Which term describes a contract still in progress with obligations outstanding?

• A. Executed Contract
• B. Open Contract
• C. Executory Contract
• D. Express Contract

Answer: (C)

In contract law, whether obligations have been fulfilled determines the label. When a contract still has duties that haven’t been performed yet, it is described as executory. This means one or both parties still owe something—like delivery, completion of work, or payment—in the future. For example, a construction contract where the builder hasn’t finished the project and the owner hasn’t paid all due milestones is executory because performances remain outstanding. Once everything is completed and all duties are satisfied, the contract becomes executed. An express contract refers to how the agreement was formed (in words, either written or spoken), not to the status of performance. Open contract isn’t a standard formal term for this situation.