Contract of Sale isa)executory Contract.b)executed Contract.c)both of ...
Correct Answer :- c
Explanation : An executed contract is when all parties have fulfilled their promises.
For example, a sales contract is complete when the transaction closes. The buyer has paid the money, and the seller has transferred the title.
An executory contract is when one or both parties have obligations still to be performed.
For example, a sales contract is an executory contract until the buyer has obtained financing-there are still obligations remaining to be performed before the contract can be considered executed.
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Contract of Sale isa)executory Contract.b)executed Contract.c)both of ...
Contract of sale can be both either executed or executory as it includes both 'sale' and 'agreement to sell'. Hence answer is C
Contract of Sale isa)executory Contract.b)executed Contract.c)both of ...
Contract of Sale
A contract of sale is an agreement between two parties, known as the seller and the buyer, whereby the seller agrees to transfer the ownership of a specific asset or goods to the buyer in exchange for a certain amount of money or other consideration. It is a legally binding contract that establishes the terms and conditions of the sale transaction.
Executory Contract
An executory contract is a type of contract where one or both parties have not yet fulfilled their obligations under the contract. In other words, it is a contract that is still in the process of being performed or executed. Both parties are bound to fulfill their respective obligations at a future date or upon the occurrence of certain conditions.
Executed Contract
On the other hand, an executed contract is a contract in which both parties have fully performed their obligations. In an executed contract, all terms and conditions have been fulfilled, and the contract is considered complete.
Contract of Sale as an Executory Contract
A contract of sale is considered an executory contract because at the time of its formation, both the seller and the buyer have certain obligations that are yet to be fulfilled. The seller is obligated to transfer the ownership of the asset or goods to the buyer, while the buyer is obligated to pay the agreed-upon price or consideration.
Until the transfer of ownership takes place and the payment is made, the contract of sale remains executory. It is only when both parties have fulfilled their obligations that the contract becomes executed.
Conclusion
In conclusion, a contract of sale is an example of an executory contract because it involves obligations that are yet to be fulfilled by both parties. Once the transfer of ownership and payment are completed, the contract of sale becomes an executed contract.
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