What is the meaning of “executory contract”?

An executory contract is a legal agreement between two or more parties that has yet to be fully performed. It also defines the rights and responsibilities of the parties involved during the contract. In Oregon, an executory contract is an agreement that has some or all of its responsibilities or obligations still to be performed by at least one of the parties in the agreement. For example, if one party agrees to provide services to the other in exchange for a payment, the agreement is considered executory until the services are performed and the payment has been made. Once all of the obligations of the parties have been fulfilled, the contract is considered complete, and the parties are no longer legally obligated to fulfill any terms of the agreement. Executory contracts are important in Oregon’s creditors rights law because they provide protection for creditors and debtors when either party fails to fulfill a contractual obligation. Creditors can use executory contracts to recoup any money owed to them, while debtors can leverage an executory contract to ensure they do not have to pay any money they do not owe. In either case, the executory contract is critical in helping to facilitate a successful transaction between the two parties.

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What is the meaning of “executory contract”?

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