On November 12^th, Mike orally agrees to sell his organ to Betty for $200.00, including delivery. Betty orally accepts the offer and pays Mike the $200.00 on November 13^th. Mike, however, is very busy and is unable to deliver the organ until November 19^th. Which of the following is correct? A) On November 13^th, the contract was executory. B) On November 20^th the contract will be executed, assuming Mike delivers the organ on November 19^th. C) This is an informal contract. D) As of November 13^th, this is an informal, executory contract, and it will be an executed contract on November 20^th, assuming Mike delivers the organ on November 19^th. E) There is not contract in this case, since Mike did not fulfill the "benefit of the bargain on November 13^th.

Question

Quizplus · Accepted Answer

An executory contract is a legally binding agreement in which both parties have not fulfilled their obligations or executed their promises. In this case, Mike has not yet delivered the organ, so the contract is executory on November 13th. However, assuming Mike delivers the organ on November 19th, the contract will become executed on November 20th. This is an informal contract since it was made orally. Therefore, option D is the correct choice.

On November 12th, Mike Orally Agrees to Sell His Organ

On November 12^th, Mike Orally Agrees to Sell His Organ