What is the exam-ready distinction?
| Roadmap post | 198 of 500 |
|---|---|
| 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 |
| Content checked through | August 2, 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 1A signed sales contract awaiting closing is normally what?
- A. Fully executed by performance
- B. Void
- C. Executory
- D. An easement
Show answer and explanation →
Answer: C. Executory
Executory is correct. An executed contract, when classifying performance status, has been fully performed. An executory contract still has material duties remaining. A signed purchase agreement awaiting closing is normally executory. Read context because the verb executed can also mean that a document was signed, which is not the same classification question. The rejected choices are Fully executed by performance; Void; An easement. Each misses the legal category or controlling fact stated in the rule.
Question 2Buyer and seller sign a purchase agreement today, with inspections, financing, payment, and deed delivery still ahead.
- A. It is fully executed merely because both signatures appear.
- B. It is void until closing.
- C. It is unilateral because only the buyer must perform.
- D. The contract is executory in the performance-status sense.
Show answer and explanation →
Answer: D. The contract is executory in the performance-status sense.
The document has been signed, but substantial contractual duties remain before completion. Therefore, The contract is executory in the performance-status sense. The other choices fail because they replace those controlling facts with a neighboring concept or an unsupported absolute rule.
Question 3What should a candidate identify first when comparing Executed Versus Executory Contract?
- A. Determine whether the question asks about signing or performance, then list every material duty that remains.
- B. The option with the longest definition, without classifying the facts.
- C. A memorized Georgia rule, even when the question asks for a national concept.
- D. The answer that sounds most favorable to the buyer, regardless of the document or event.
Show answer and explanation →
Answer: A. Determine whether the question asks about signing or performance, then list every material duty that remains.
Determine whether the question asks about signing or performance, then list every material duty that remains. That sequence identifies the legal category before the label. Choosing by definition length ignores the facts, importing a Georgia rule can answer the wrong jurisdictional question, and favoring one party substitutes sympathy for classification.
Mastery tracking
Mark this distinction mastered only when every statement is 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 controlling fact.
- Explain why every trap and distractor is tempting but wrong.
- Answer all three original questions correctly in mixed practice on a later day.
Recommended next lesson
Continue with Bilateral Versus Unilateral Contract. Continue to roadmap comparison 199.
Return to the complete exam-concept library or the Contracts hub.