What is the exam-ready distinction?
| Official syllabus topic | Contracts: Contract Status; Executed and Executory |
|---|---|
| Official PSI area | Contracts |
| Published weight | 19% of the 100-question national portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual comparison. Use the source, document, actor, event, and timing stated in the question before applying a memorized definition.
Side-by-side comparison
Read across each row. The terms are deliberately compared on identical dimensions so the difference remains clear when the exam hides the vocabulary inside a scenario.
| Decision dimension | Executed contract | Executory contract |
|---|---|---|
| Performance status | All promised performance has been completed | One or more material duties remain |
| Timing | After final performance | Between formation and full performance |
| Real estate example | Closed sale with required performance complete | Signed purchase agreement awaiting closing |
| Word caution | Executed can also mean signed in a document-execution context | Executory specifically focuses on remaining duties |
Decision rule
Georgia-specific distinction
Worked example
Scenario. Buyer and seller sign a purchase agreement today, with inspections, financing, payment, and deed delivery still ahead.
Reason it through. The document has been signed, but substantial contractual duties remain before completion.
Answer. The contract is executory in the performance-status sense.
Common exam traps
- Equating signature with full performance
- Calling an executory contract invalid
- Ignoring remaining contingencies and duties
- Confusing executed contract with executed deed
Original practice questions with detailed explanations
These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Buyer and seller sign a Georgia purchase agreement today. Inspections, financing, payment and deed delivery are still ahead. In performance terms, how is the contract classified?
- A. Executed, because both parties have signed it
- B. Void, until the closing takes place
- C. Executory, because material duties remain
- D. Unilateral, because only the buyer must perform
Show answer and explanation →
Answer: C. Executory, because material duties remain
An executory contract still has material duties to perform, and here payment, financing and deed delivery remain. The trap is the word executed, which can mean signed, but signing does not mean the contract has been fully performed.
Question 2A sale has closed. The buyer paid in full, the seller delivered the deed, and no obligations remain. How is the purchase contract now classified?
- A. Executory
- B. Executed
- C. Voidable
- D. Implied
Show answer and explanation →
Answer: B. Executed
In the performance sense, an executed contract is one that has been fully performed. Payment and deed delivery are done and nothing remains, so the contract is executed. Executory would fit only while duties are still outstanding.
Question 3A practice question says a listing agreement "was executed on March 3," and the listing period runs until September 3. What does "executed" most likely mean in that sentence?
- A. That the listing was fully performed on March 3
- B. That the property sold on March 3
- C. That the listing ended on March 3
- D. That the agreement was signed on March 3
Show answer and explanation →
Answer: D. That the agreement was signed on March 3
Executed can mean that a document was signed, which is a different question from whether a contract has been fully performed. A listing that runs until September 3 cannot have been fully performed on March 3, so the word here refers to signing. Reading every use of executed as full performance is the trap.
Ready to move on?
You have this distinction down when all of these are true.
- Define every compared term without using the other term as the definition.
- Rebuild the comparison table from memory.
- State the decision rule and Georgia distinction without notes.
- Solve the worked example after changing one key fact.
- Explain the rule or fact that makes each distractor wrong.
- Answer all three original questions correctly in mixed practice on a later day.
Recommended next lesson
Continue with Bilateral Versus Unilateral Contract. Performance status is one way to classify a contract, and the next page asks how it was formed, separating a bilateral contract of promise for promise from a unilateral one accepted by performance.
Return to the complete exam-concept library or the Contracts hub.