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
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.