Contracts

In New Mexico, a real estate purchase agreement is considered 'executory' from the time it is signed until closing. 'Executory' means:

AThe contract has been fully performed by both parties
BThe contract is still in the process of being performed — both parties have obligations yet to be fulfilled✓ Correct
CThe contract was executed by an attorney
DThe contract has been cancelled

Explanation

An executory contract is one where the performance by one or both parties is not yet complete. A real estate purchase agreement is executory from signing until closing — when both parties have fully performed their obligations.

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