Question

On the first day of the month, Thomas and Moore orally agreed that Thomas was to deliver to Moore’s place of business a case of fruit on each Monday of the current month. Moore was to pay the US $100 price on the first of the following month. On the 15th of the month, the agreement should be classified as Unexecuted because the agreement was
a. Oral.
b. Executory.
c. Cancelable at any time.
d. Executed.

Answer 1

Answer:

The correct answer is option b. Executory.

Explanation:

An agreement with the nature of execution is known as executory agreement. This kind of agreement requires execution and if there is a failure in the execution of the agreement, the agreement can be nullified.

In the above case, if Thomas and Moore fail to fulfill their side of the agreement, by the middle of the month, the agreement can automatically be nullified.