What is an executory contract also known as?

An executory contract is indeed referred to as a contract that is still in process. This type of contract involves an agreement where some or all of the obligations or promises have yet to be performed by one or more parties. In other words, it is a contract where commitments are made, but both sides have not yet completed their contractual duties.

For instance, if one party agrees to deliver goods at a future date while the other party agrees to pay upon delivery, neither party has fully executed their responsibilities at the time of the agreement, which aligns with the definition of an executory contract. This contrasts with a fully executed contract where all parties have completed their obligations.

Understanding this distinction is crucial for both legal practitioners and parties entering agreements, as it impacts the rights and responsibilities under contract law significantly.