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Complete glossary lessonNational exam concept

Executory contract

An executory contract is a valid agreement under which one or more parties still have material performance due, such as a purchase contract between acceptance and closing.

Official area

Contracts

Knowledge cluster

Contract performance

Learning sequence

Define, distinguish, apply, retrieve

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Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

What does Executory contract mean in real estate?

An executory contract is a valid agreement under which one or more parties still have material performance due, such as a purchase contract between acceptance and closing.

How is Executory contract different from the closest exam answer?

Executory means performance remains. Executed means all required performance is complete.

What is the Georgia-specific rule?

Most Georgia purchase agreements are executory during due diligence, financing, title work, and the period before the attorney closing.

Worked exam example

Scenario

The parties have signed, but the buyer must obtain financing and pay while the seller must deliver marketable title at closing.

Decision rule

Executory means performance remains. Executed means all required performance is complete.

What is the most common exam trap?

Trap correction

Executory does not mean defective, uncertain, or unenforceable. It describes performance status only.

Memory cue: Executory does not mean defective, uncertain, or unenforceable.

Original exam check

Apply the definition

Which statement correctly explains Executory contract?

Mastery tracker

Do not mark this term complete until you can retrieve it.

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Related terms to learn next

Recommended next complete lesson

Continue with Contracts complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.

Executory contract quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is Executory contract?

An executory contract is a valid agreement under which one or more parties still have material performance due, such as a purchase contract between acceptance and closing.

What is Executory contract commonly confused with?

Executory means performance remains. Executed means all required performance is complete.

How does Georgia treat Executory contract?

Most Georgia purchase agreements are executory during due diligence, financing, title work, and the period before the attorney closing.