Executory contract example

A listing agreement for a home that is not yet sold is generally considered to be:

  1.  Express and executory
  2.  Express and executed
  3.  Express and unilateral
  4.  implied and executory

The answer is A.  An executory contract means that some act of the contract remains to be completed by one or more of the parties.  Because a listing agreement for a home that has not yet been sold still has to be completed, it is an executory contract.

It is also an express contract because the parties have agreed to perform an act under a written agreement – the listing agreement in this case.