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

Question

Quizplus · Accepted Answer

An executory contract is a contract where one or more parties have not yet fulfilled their obligations. In this case, Elizabeth has not yet paid for the car and Spadace Motors has not yet delivered the car, making it an executory contract. A void contract is a contract that is not legally binding from the beginning, an unenforceable contract is a contract that cannot be enforced due to legal reasons, and an executed contract is a contract that has been fully performed by both parties.

Elizabeth Signs a Contract to Purchase a New Car from Spadace