What is an executory contract?

An executory contract is a legally binding agreement between two or more parties that has yet to be fully performed. In California, an executory contract is a written agreement that one or both of the parties will do something in the future, such as the delivery of goods, the performance of services, or the payment of money. Executory contracts are commonly used in business to ensure that goods, services, or payments are received before any money is exchanged. This type of contract is often used in real estate transactions, employment contracts, and other commercial agreements. An executory contract is enforceable in California and its terms must be followed for a successful transaction. If either party fails to meet their obligations as outlined in the contract, the other side may be able to sue for damages or breach of contract. The enforceability of an executory contract may depend on certain factors, such as the wording of the contract and the circumstances surrounding the agreement.

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What is an executory contract?

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