What is the classification of a contract that has been fully performed by both parties?

What is the classification of a contract that has been fully performed by both parties?

• A. Executed contract
• B. Executory contract
• C. Void contract
• D. Unilateral contract

Answer: (A)

A contract that has been fully performed by both parties is classified as an executed contract. This classification indicates that all obligations stipulated in the contract have been fulfilled, meaning both parties have completed their respective duties and responsibilities as outlined in the agreement. Executed contracts contrast with executory contracts, where one or both parties still have pending obligations to fulfill. This distinction is essential for understanding the status of contractual relationships. The terms void contract and unilateral contract pertain to different concepts. A void contract is one that is not legally enforceable due to various reasons, such as illegality or incapacity, while a unilateral contract involves a promise made by one party in exchange for a specific act by another party, with the latter not needing to make a reciprocal promise. Therefore, the classification of an executed contract accurately describes the state of affairs when both parties have completed their contractual obligations.

A contract that has been fully performed by both parties is classified as an executed contract. This classification indicates that all obligations stipulated in the contract have been fulfilled, meaning both parties have completed their respective duties and responsibilities as outlined in the agreement.

Executed contracts contrast with executory contracts, where one or both parties still have pending obligations to fulfill. This distinction is essential for understanding the status of contractual relationships.

The terms void contract and unilateral contract pertain to different concepts. A void contract is one that is not legally enforceable due to various reasons, such as illegality or incapacity, while a unilateral contract involves a promise made by one party in exchange for a specific act by another party, with the latter not needing to make a reciprocal promise. Therefore, the classification of an executed contract accurately describes the state of affairs when both parties have completed their contractual obligations.