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The term 'executory' contract refers to a contract that has yet to be fully performed by all parties involved. In this context, 'executory' highlights that some obligations or actions remain to be carried out, meaning that the contract is still active but not entirely fulfilled.

For instance, in a situation where one party is supposed to deliver goods, and another party is expected to make a payment upon receipt, if the delivery hasn't occurred yet, the contract is considered executory. This understanding is crucial in legal and business transactions, as it helps define the responsibilities of each party and the status of the agreement at any given time.

In contrast, fully completed contracts indicate that all parties have fulfilled their obligations, and agreements that are enforceable without mutual consent or have no conditions for fulfillment do not accurately reflect the nature of executory contracts. Thus, understanding the definition of 'executory' allows individuals to grasp the dynamics of ongoing agreements and the potential obligations that remain.