Specimen 1(b)

Hi,

(1) How to clearly differential whether the item should be contingent liability and financial liability? Both have constructive obligation

(2) An executory contract is where the contract is settled at a later date and not immediately.
Contingent liability is possible obligation arises from past event whose existence will be confirmed by occurrence of one or more uncertain future event not within the control of entity.
But executory contract not within contingent liability.

A contingent payment based on the future profit seems meet the definition of contingent liability but it is executory contract.
It seems contradict. How can decide whether should under contingent liability or executory contract?

Thank you