Which term describes a contract that has been fully performed?

Which term describes a contract that has been fully performed?

• A. Executed contract.
• B. Executory contract.
• C. Informal contract.
• D. Void contract.

Answer: (A)

When all promised duties have been completed by both sides, the contract is described as executed. In real estate, that means the buyer has fulfilled obligations like payment and any contingencies are satisfied, and the seller has delivered what was promised (such as title). Once everything has been performed, no further duties remain, so the contract is considered executed. If duties still exist to be carried out, the contract is executory. An informal contract refers to a contract that isn’t formalized in writing, though it can still be valid; a void contract is unenforceable from the start due to illegality or missing essential elements.

When all promised duties have been completed by both sides, the contract is described as executed. In real estate, that means the buyer has fulfilled obligations like payment and any contingencies are satisfied, and the seller has delivered what was promised (such as title). Once everything has been performed, no further duties remain, so the contract is considered executed. If duties still exist to be carried out, the contract is executory. An informal contract refers to a contract that isn’t formalized in writing, though it can still be valid; a void contract is unenforceable from the start due to illegality or missing essential elements.