Contracts

Executed vs Executory Contract

An executed contract is fully performed by both parties; an executory contract still has obligations left to complete.

Quick flashcard

What does Executed vs Executory Contract mean on the Texas real estate exam?

Answer: An executed contract is fully performed by both parties; an executory contract still has obligations left to complete.

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Executed vs Executory Contract definition

An executed contract is one in which both parties have fully performed all of their obligations, such as a sale that has closed. An executory contract is one in which something remains to be done.

A signed purchase contract before closing is executory, because the parties still have to close. After closing, the contract is executed.

Source basis

Definition checked against the official sources below on .

On the exam

Executed means fully performed. Executory means obligations remain. A pending sale is executory until closing.

Exam trap

Do not confuse executed (fully performed) with merely signed. A signed contract awaiting closing is executory, not executed.

Tested in

Contracts & Agency (16 of 80 National)

From definition to recall

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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.