What defines an 'executory contract'?

An executory contract is defined as a contract in which some or all obligations are still to be performed or completed. In other words, it is an agreement that has not been fully executed; one or both parties have pending duties that must be fulfilled. This distinguishes it from fully executed contracts, where all parties have completed their obligations.

Understanding this concept is crucial in contract management, as it helps clarify the status of obligations and rights under the contract. This status is particularly important for enforcing contract terms, assessing risk, and managing performance obligations.

The other options do not accurately represent the definition of an executory contract, as they either refer to different contract statuses or lack the element of pending obligations that is central to the understanding of executory agreements.