National Real Estate Exam (PSI)ContractsHard
A buyer and seller have both fully performed all obligations under a real estate purchase contract, including closing and transfer of title. This contract is now classified as:
- AExecutory
- BExecuted
- CBilateral
- DVoidable
Show answer & explanationAnswer & explanation
Correct answer: B. Executed
A contract is described as "executed" once both parties have fully performed all their obligations. This is distinct from "executory," which describes a contract with obligations still pending.
Why the other options are wrong
- A. Executory describes contracts with remaining unperformed obligations, which does not apply here.
- C. Bilateral describes mutual promises exchanged, but doesn't address the performance status.
- D. Voidable relates to capacity or defect issues, unrelated to performance status.
Executed vs Executory Contract
An executed contract is one where all parties have fully performed their obligations; an executory contract still has obligations remaining to be performed.
- A signed purchase agreement before closing is executory
- After closing and full performance, it becomes executed
- Executed/executory describes performance status, not validity
Memory trick: Executed = everything's done; executory = still owing.