Asked by Ansley Bailey on Jun 17, 2024
Verified
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.
Executory Contract
A contract under which both parties have not yet fully performed their contractual obligations.
- Acknowledge the existence of contracts enforced by law and the notion of quasi-contracts.
Verified Answer
TQ
Tabish QamarJun 18, 2024
Final Answer :
D
Explanation :
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.
Learning Objectives
- Acknowledge the existence of contracts enforced by law and the notion of quasi-contracts.