Rough Water, LLC, and Schafer enter into a contract for the delivery of a used kayak. Until the kayak is delivered and paid for, these parties have
A) an executory contract.
B) no contract.
C) a quasi contract.
D) an executed contract.

Question

Rough Water, LLC, and Schafer enter into a contract for the delivery of a used kayak. Until the kayak is delivered and paid for, these parties have
A) ​an executory contract.
B) ​no contract.
C) ​a quasi contract.
D) ​an executed contract.

Quizplus · Accepted Answer

An executory contract is a contract in which one or both parties have not yet fully performed their obligations. In this case, Rough Water, LLC, and Schafer have agreed to deliver and pay for a used kayak, but until those actions are completed, the contract is executory.

Rough Water, LLC, and Schafer Enter into a Contract for the Delivery