Meaning of executory contract. Is it a legal term?

Hi Josuahd

Welcome to the forums.

Executory contract means or includes those contracts or leases in which both the parties in the mentioned agreement have some duties remaining to be done. A debtor has the provision of assuming it or rejecting it.

Feel free to place your queries in the forums.

Regards
Roxette

WANTS TO CHANGE THE PROPERTY TO EXECUTORY CONTRACT. THEY ARE IN BANKRUPTCY AT THIS TIME. THEY ALSO TRIED TO REAFIRM IT PRIOR TO THIS EXECUTORY CONTRACT. WHAT IS A EXECUTORY CONTRACT AND WHY DO THEY WANT TO CHANGE IT? WHAT ARE MY OPTIONS AS I AM DUE A LARGE SUM ON THIS ORIGINAL CONTRACT

"Executory" means one or both parties still have obligations remaining to be fulfilled under the terms of the contract.

The most common type of executory contract I've seen included in a bankruptcy is a rental lease. The BK courts generally allow executory contracts to remain in force outside of the bankruptcy. However, the BK court does give the debtor the option to reject executory contracts, which can render your contract null and void. In no case would they be able to keep the property without paying for it -- if they did reject the contract, they would have to leave and you get your property back.

Since property is involved, and there is a lot of money involved, you may be best to consult an attorney who specializes in bankruptcy/creditors' rights issues.