Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence?
A) Quasi contract.
B) Executed contract.
C) Illusory contract.
D) Executory contract.

Question

Quizplus · Accepted Answer

An executory contract is one in which some future act or obligation remains to be performed according to its terms. Since the doghouse has not yet been built, the contract between Samuel Tate and Bill Smith is not fully executed, making it an executory contract.

Samuel Tate Enters into a Contract with Bill Smith Under