ContractsIntermediateNorth Carolina Exam

A North Carolina contract is 'executory' when:

AThe contract has been fully performed by all parties, in general
BThe contract has been signed but not yet fully performedCorrect
CThe contract has been voided by both parties
DThe contract is being disputed in court

Why The contract has been signed but not yet fully performed Is Correct

Answer B: The contract has been signed but not yet fully performed

An executory contract is one that has been agreed upon but not yet fully performed. A real estate contract is executory from signing until the closing when all terms are fulfilled.

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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