Day 7 – Executory Contract
Definition: A contract that has not yet been fully performed, with obligations still outstanding.
Example: A 12-month phone service contract where the consumer continues to pay monthly fees.
Example: a toy supplier agrees to deliver 700 toys to a department store on December 15th. The department store agrees to pay the supplier £8500 upon the delivery of the toys. The contract is signed on November 30th. At this point, neither party has fulfilled their obligations.
Case law: Foakes v Beer [1883][1]
[1] Foakes v Beer (1884) App Cas 605
