Arizona Real Estate License Practice Exam

The term that describes a contract signed by all parties but still containing conditions that have not yet been fulfilled is known as executory. In a contractual context, an executory contract is one where some obligations remain to be performed, meaning that while the agreement is legally binding and all parties have expressed their intention to be bound by the contract, certain conditions or actions still need to occur for the contract to be fully executed.

Understanding this concept is crucial because it highlights the difference between contracts that are completed (executed) and those that are still in the process of being fulfilled (executory). In scenarios where a contract includes conditions that depend on future actions or events, it is considered executory until those conditions are met.

Other terms like invalid or void refer to contracts that cannot be enforced or are not legally binding from the outset, which does not apply here since all parties have agreed to the terms. An executed contract, on the other hand, would imply that all obligations have already been completed, which does not align with the scenario described in the question. Hence, executory is the correct classification for such a contract.