Executed and Executory Agreements

Executed Agreement

An agreement where the performance has been fully completed.

Partly Executed Agreement

An agreement where performance has begun but not completed.

Executory Agreement

An agreement where neither party has performed any part of the agreement.

Importance of Distinction Between Executed and Executory Agreements

It affects the enforceability of contracts, especially when considerations of reliance and performance are involved.

Uncertainty in Agreement Terms

Courts tend to avoid declaring no contract exists when performance has begun, as it indicates the agreement is workable.

Relying Party

A party that has partially performed obligations under an agreement, showing reliance on the contract.