Which of the following is an example of an executory contract?
A)A warranty obligation on a product sold.
B)Interest accrued on an outstanding loan.
C)An agreement to purchase inventory next month.
D)The purchase of goods from a supplier.

Question

Quizplus · Accepted Answer

An executory contract is a contract in which one or more parties have not yet fulfilled their obligations. In this case, the agreement to purchase inventory next month is an example of an executory contract because both parties have obligations that have not yet been fulfilled.

Which of the Following Is an Example of an Executory