financial and executory contracts

Hi,

An executory contract is where the terms within are not fulfilled immediately but at a later date, so a lease is an example of one as the payments within the contract are made over the length of the contract.

I’m not too sure what you mean by a financial contract. Could you provide more detail please?

Thanks

I presume the examiner is saying that a financial contract is one that arises from a financial instrument, it isn’t a term that I’d personally use. If that is the case then you would need to look at the definition of a financial instrument and so that of a financial asset and that of a financial liability.