A contract that has yet to be fully performed is classified as what type?

A contract that has yet to be fully performed is classified as executory. This term refers to agreements in which one or both parties have obligations that are still pending. In an executory contract, certain conditions or duties outlined in the agreement remain unfulfilled, signaling that the contract is still in the process of being executed.

Understanding the term ‘executory’ is essential for differentiating between contracts at various stages of completion. For instance, once all duties are carried out and all obligations are met, the contract transitions from executory to executed, signifying that it has been fully performed.

The other classifications, while relevant to contract law, do not fit the description provided in the question. Informal contracts do not pertain specifically to the performance status; rather, they refer to agreements that may not adhere to formal requirements but are still legally binding. Bilateral contracts describe the mutual obligations between parties but do not indicate the performance status. Finally, executed contracts indicate complete performance by all parties rather than contracts still in progress. Thus, executory is the appropriate classification for contracts that have yet to be fully performed.