Executory contract

Executory contract

An executory contract is a contract in which a party has material unperformed obligations. Although material, an obligation to pay money does not usually make a contract executory. An obligation is material if a breach of contract would result from the failure to satisfy the obligation.cite web|url=http://bankruptcy.cooley.com/2006/07/articles/business-bankruptcy-issues/executory-contracts-what-are-they-and-why-do-they-matter-in-bankruptcy/|title=Executory Contracts -- What Are They And Why Do They Matter In Bankruptcy?|author=Bob Eisenbach|publisher=In the (Red)|date=July 18, 2006|accessdate=2007-12-21] . A contract that has been fully performed by one party but not by the other party is classified as an executory contract.

In bankruptcy law

The term executory contract assumes a specialized meaning in some areas of law. In bankruptcy law, an executory contract is a contract in which continuing obligations exist "on both sides" of the contract.

Installment contracts

Many installment contracts are commonly executory, for example, installment credit loans, period loan payments, mortgages, paychecks, and similar contracts.

References

ee also

* Bankruptcy in the United States
* Chapter 11, Title 11, United States Code
* Charging order
* Executory interest
* Future interest
* Rule against perpetuities


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Look at other dictionaries:

  • executory contract — see contract Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. executory contract …   Law dictionary

  • executory contract — a contract in which some or all of the obligations of each party have not yet been completed. The debtor in possession (or trustee) is allowed to reject unilaterally certain executory contracts (Glossary of Common Bankruptcy Terms) see leases and …   Glossary of Bankruptcy

  • executory contract or lease — Generally includes contracts or leases under which both parties to the agreement have duties remaining to be performed. (If a contract or lease is executory, a debtor may assume it or reject it.) (BankruptcyAction.com) United Glossary of… …   Glossary of Bankruptcy

  • executory contract — A contract that has not as yet been fully completed or performed. A contract the obligation (performance) of which relates to the future. Wagstaff v. Peters, 203 Kan. 108, 453 P.2d 120, 124. In context of Bankruptcy Code, is contract under which… …   Black's law dictionary

  • executory contract — A contract that has not as yet been fully completed or performed. A contract the obligation (performance) of which relates to the future. Wagstaff v. Peters, 203 Kan. 108, 453 P.2d 120, 124. In context of Bankruptcy Code, is contract under which… …   Black's law dictionary

  • executory contract — A contract to be performed, each party having bound himself to do or not to do a particular thing. 17 Am J2d Contr § 6 …   Ballentine's law dictionary

  • executory contract to sell — Contract under which something remains to be done by either party before delivery and passing of title. Martin v. John Clay & Co., Mo.App., 167 S.W.2d 407, 411 …   Black's law dictionary

  • executory contract to sell — Contract under which something remains to be done by either party before delivery and passing of title. Martin v. John Clay & Co., Mo.App., 167 S.W.2d 407, 411 …   Black's law dictionary

  • executory contract of sale — A contract, the terms and conditions of which must be performed before title passes. 46 Am J1st Sales § 412. A land contract under which the execution and delivery of a further instrument is necessary for the passing of title to the purchaser. 55 …   Ballentine's law dictionary

  • executory — ex·ec·u·to·ry /ig ze kyə ˌtōr ē/ adj: designed or of such a nature as to be performed in the future or to take effect on a future contingency cancellation of the executory portion of the contract J. J. White and R. S. Summers compare contingent… …   Law dictionary

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