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An "Executory Contract" is an agreement where everyone involved hasn't yet done everything they promised to do. It's like when you and your friends make a plan to trade something, but some parts of the trade still need to happen before the deal is done. An executory contract means there are still actions left to be taken before all the terms of the agreement are met.
For example, imagine someone agrees to buy a house, but the closing date is two weeks away. The buyer and seller have signed a contract, but the buyer hasn't paid the money, and the seller hasn't handed over the keys yet. This contract is considered executory because both parties still have promises to fulfill.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
In the land of promises yet to be,
An executory contract, you might see.
It's when some things are done, but not all,
And there's still more to do, before the deal's called.
Like buying a house, with time left to wait,
The closing is coming, but it's not the right date.
The contract is signed, but the deal's not complete,
For both buyer and seller, there's more to be neat.
They wait for the day, when the rest will be done,
The money paid, and the keys passed on.
In the land of contracts, this one's not through,
An executory contract, waiting for you.