Which statement correctly describes an executory contract?

An executory contract is defined as an agreement in which one or more parties have not yet completed their obligations under the terms of the contract. This ongoing nature means that the contract is still in the process of being executed, with certain duties or actions that remain to be fulfilled. In the context of funeral services, this could refer to pre-need agreements where services are promised in the future, but the actual execution of those services has not yet taken place.

Choosing the correct answer demonstrates an understanding that an executory contract is a work in progress, involving commitments that the parties have agreed upon but have not fully performed. This contrasts with completed contracts, which fulfill all obligations immediately, and highlights the active nature of executory contracts, where execution is pending.