Which of the following describes an executory contract?

An executory contract is characterized by the fact that the parties involved have yet to perform their obligations as outlined in the agreement. This means that neither party has completed their responsibilities under the contract, which can include delivering goods, making payments, or providing services. The term "executory" indicates that the contract is still active and binds the parties to future performance.

In the context of contract law, many agreements may remain executory until specific conditions are met or the time comes to fulfill the terms. Understanding this concept is crucial, as it can affect how disputes are resolved or how obligations are enforced. The notion of remaining performance not only defines the current state of the contract but also highlights that the parties are still under a legal duty to perform their respective roles as stipulated.