An executory contract is one where:
AThe contract has been rescinded
BBoth parties have completed their obligations
COnly the offeree has performed
DIt is wholly unperformed by both parties
Answer & Solution
Correct answer: D. It is wholly unperformed by both parties
1. Per OCR: "Executory contracts: It is a contract which is wholly unperformed."
2. Even if one party has done their part, if the other has not, it remains executory.
3. Executed contracts have both sides completed.
_Source: ICMAI BoS CMA Foundation Paper 1 (FBLC) — Paper1_07042026.pdf, Module 2 §2.1 (page 52)_
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