ContractsIntermediateArizona Exam

An Arizona real estate purchase contract that is 'executory' means:

AIt has been fully performed by all parties
BIt has been signed but not yet fully performed—some obligations remainCorrect
CIt was executed but later found to be illegal
DIt requires a court to enforce it

Why It has been signed but not yet fully performed—some obligations remain Is Correct

Answer B: It has been signed but not yet fully performed—some obligations remain

An executory contract is one that has been formed (signed) but where obligations remain to be performed—such as a purchase contract between signing and closing. An executed contract is one where all obligations have been fully performed.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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