A contract that has not been fully performed by all parties is known as what type of contract?

A contract that has not been fully performed by all parties is referred to as a voidable contract. This indicates that the contract is valid and enforceable, but one or more parties have the right to void (or cancel) it due to certain conditions or circumstances, often related to misrepresentation, undue influence, fraud, or the incapacity of one party. This means that while the contract exists, it has not reached its conclusion and can be annulled by the affected party.

In contrast, an executable contract refers to an agreement that has yet to be fully executed or completed, but this term does not carry the implications of enforceability issues tied to a voidable contract. A discharged contract pertains to agreements where all parties have fulfilled their obligations, leading to the termination of the contract, whereas a formal contract typically refers to an agreement that requires specific formalities, such as written documentation or notarization. Hence, these terms do not apply to a situation where not all parties have completed their obligations in the contract.