Contracts, 12% of the examination
Executory contract
A contract in which one or more material obligations remain to be performed.
A purchase contract usually remains executory during escrow even though it has been signed. It becomes executed in the strict contract sense when the promised performance is complete. Do not confuse execution as signing with full execution as performance.
Test the distinction
A relevant question from Contracts, selected because its facts or explanation use this concept.
What is the difference between an executory and an executed contract?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.