Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7, 000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which describes the type of contract in existence?

Executory Contract

Explanation:

If Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7, 000 and Tate is to build a garage, repair a boat, and build a doghouse and the doghouse has not yet been built; this describes the type of contract called an executory contract

An executory contract can be defined as a contract between two parties that has not been fully executed because the parties to the contract still have obligations to fulfill in order to fully execute the contract. Hence it refers to where the terms of the contract will be fulfilled at a future date.

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