What is the difference between Executed and Executory Types of Contracts?– Explained!

Difference between Executed and Executory Types of Contracts are given below:

1. Executed Contract:

A contract in which both the parties performed their respective promises. When a contract has been completely performed, it is termed as executed contract, i.e. it is a contract where, under the terms of a contract, nothing remains to be done by either party.

A contract may be executed at once i.e. at the time when it is made. For example, in case of cash sales, the contract is executed at once. It may become executed in some future date when the terms of the contract are carried out.

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2. Executory contract:

A contract in which the promises of both the parties have yet to be performed. Thus, executory contract is that where under the terms of a contract something remains to be done by the parties.

In other words, where one or both the parties to the contract have still to perform their obligations in future, the contract is termed as executory contract.

For example:

X agreed to sell his car to Y for Rs. 2, 00,000. Car was to be delivered by X on 20^th of next month, and price was to be paid by 30^th of that month.

It is an executory contract, as both the parties have to perform their respective obligation in future.

Suppose X delivered the car on due date i.e. on 20^th. The contract is still executory, because Y is still under obligation to pay the price on 30^th of the month. In such cases, the contract as a whole is executory one, though it may be said that it is partly executed and partly executory.