Which term describes a contract in which all terms and conditions have not yet been fully performed?

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

Answer: (A)

When a contract still has promises to fulfill, it’s described as executory. In an executory contract, the parties have agreed to perform actions in the future, so the agreement remains unfinished and in effect until those duties are completed. An executed contract, by contrast, is one where all terms have been carried out and nothing remains to be done. A bilateral contract refers to mutual promises by both sides, but doesn’t indicate whether performance is complete. An implied contract is formed by the conduct of the parties rather than a written sign‑off, again not about the current status of performance. For example, a construction contract is executory while the builder has not finished work and the owner hasn’t paid all amounts due; once everything is completed and paid, it becomes an executed contract.