Francie drives into Gage's Auto Service and asks Gage to replace a tire on her car. After Gage replaces the tire, but before Francie pays for it, any contract between them is
A) executed.
B) executory.
C) void.
D) unenforceable.

Question

Francie drives into Gage's Auto Service and asks Gage to replace a tire on her car. After Gage replaces the tire, but before Francie pays for it, any contract between them is
A) ​executed.
B) ​executory.
C) ​void.
D) ​unenforceable.

Quizplus · Accepted Answer

A contract is executory before both parties have fulfilled their obligations (in this case, Francie must pay for the tire), so it is considered an executory contract until payment is made.

Francie Drives into Gage's Auto Service and Asks Gage to Replace