Elizabeth signs a contract to purchase a new car from Spadace Motors. She has not yet paid for the car and Spadace Motors has not yet delivered the car to Elizabeth. This is an example of a(n)________ contract.
A) unenforceable
B) executory
C) void
D) executed

Question

Quizplus · Accepted Answer

An executory contract is a contract where one or both parties have not yet fulfilled their obligations under the contract. In this case, Elizabeth has not yet paid for the car and Spadace Motors has not yet delivered it, so this is an example of an executory contract.

Elizabeth Signs a Contract to Purchase a New Car from Spadace