Contracts

In New York, a real estate contract is 'executory' when:

AThe contract has been fully performed by both parties
BThe contract has been signed but not yet fully performed — both parties still have obligations to fulfill✓ Correct
CThe contract has been rescinded
DThe contract is being enforced by court order

Explanation

An executory contract is one that has been entered into but not yet fully performed — both parties still have obligations remaining. In a New York real estate transaction, the contract is executory between the date of signing and the date of closing. At closing, the contract is 'executed' (fully performed).

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