Executory contract

An executory contract is like a big promise between two people or companies. Think of it like when you promise to do something for a friend, like share your toys or help them with their homework. In an executory contract, one person promises to do something and the other person promises to do something else in return. But unlike just sharing toys or doing homework, these promises are usually about things like money or property.

Here's an example: Let's say you have a lemonade stand and your neighbor wants to buy some of your lemonade. You both agree on a price of 50 cents per cup, but your neighbor says they'll pay you next week. You promise to give them the lemonade and they promise to pay you later. That's an executory contract!

In an executory contract, both people involved have to keep their promises. So you have to make sure you give your neighbor the lemonade they ordered, and they have to make sure they pay you next week like they promised. If one of you doesn't keep your promise, the contract might not work out and you might not be friends anymore!

So an executory contract is just a big promise that both people have to keep in order for it to work. It's like when you make a deal with a friend, but with grown-up stuff like money and property.