An executory contract is a contract in which a party has material, unperformed obligations. Although material, an obligation to pay money does not usually make a contract executory.
An obligation is "material" if a breach of contract would result from the failure to satisfy the obligation. A contract that has been fully performed by one party but not by the other party also is classified as an executory contract.
U.S. bankruptcy law Edit
The term executory contract assumes a specialized meaning in some areas of law. Under U.S. bankruptcy law, for example, an executory contract is a contract in which continuing obligations exist on both sides of the contract.