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Could you please explain the term of executory contract in simple English and give an example for it?Thank you.
I agree to buy a car for 1,000. It will be delivered in a month.
Is this a financial instrument? No – it will be settled by delivery of the car.
The car will not be recorded until it is delivered in a month – DR PPE CR CASH
Now, that’s an executory (means ‘delivery in the future’) contract.
🙂
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