{"id":499,"date":"2020-07-23T09:00:29","date_gmt":"2020-07-23T09:00:29","guid":{"rendered":"https:\/\/www.houstonbusinesslawyers.net\/?p=499"},"modified":"2020-05-26T18:04:00","modified_gmt":"2020-05-26T18:04:00","slug":"executory-contracts","status":"publish","type":"post","link":"https:\/\/www.houstonbusinesslawyers.net\/executory-contracts\/","title":{"rendered":"Executory Contracts"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.houstonbusinesslawyers.net\/executory-contracts\/#Executory_Contract_Real_Estate\" title=\"Executory Contract Real Estate\">Executory Contract Real Estate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.houstonbusinesslawyers.net\/executory-contracts\/#Can_An_Executory_Contract_Be_A_VerbalOral_Agreement\" title=\"Can An Executory Contract Be A Verbal\/Oral Agreement?\">Can An Executory Contract Be A Verbal\/Oral Agreement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.houstonbusinesslawyers.net\/executory-contracts\/#_Uses_For_Executory_Contracts\" title=\"\u00a0Uses For Executory Contracts\">\u00a0Uses For Executory Contracts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.houstonbusinesslawyers.net\/executory-contracts\/#Validity_Of_An_Executory_Contract_In_Real_Estate\" title=\"Validity Of An Executory Contract In Real Estate\">Validity Of An Executory Contract In Real Estate<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.houstonbusinesslawyers.net\/executory-contracts\/#You_may_also_be_interested_in%E2%80%A6\" title=\"You may also be interested in&#8230;\">You may also be interested in&#8230;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Executory_Contract_Real_Estate\"><\/span>Executory Contract Real Estate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Any contract in which the terms are set to be fully performed at a later date is an executory contract. Some examples of executory contracts include real estate deeds, development contracts, car lease, rental lease and more. In Texas, any contract that takes longer than 180 days is an executory contract. Both parties that enter into an executory contract have duties that they must perform until the full execution of the contract.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Can_An_Executory_Contract_Be_A_VerbalOral_Agreement\"><\/span>Can An Executory Contract Be A Verbal\/Oral Agreement?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-576\" src=\"https:\/\/www.houstonbusinesslawyers.net\/wp-content\/uploads\/2020\/05\/Executory-Contracts-300x200.jpg\" alt=\"Executory Contracts\" width=\"425\" height=\"284\" srcset=\"https:\/\/www.houstonbusinesslawyers.net\/wp-content\/uploads\/2020\/05\/Executory-Contracts-300x200.jpg 300w, https:\/\/www.houstonbusinesslawyers.net\/wp-content\/uploads\/2020\/05\/Executory-Contracts-768x513.jpg 768w, https:\/\/www.houstonbusinesslawyers.net\/wp-content\/uploads\/2020\/05\/Executory-Contracts-250x167.jpg 250w, https:\/\/www.houstonbusinesslawyers.net\/wp-content\/uploads\/2020\/05\/Executory-Contracts.jpg 800w\" sizes=\"(max-width: 425px) 100vw, 425px\" \/>Executory contracts must be in writing and must be signed by the parties that enter into the agreement. This is the only way the agreement can be enforceable. In fact, any oral agreement that is not in writing is difficult to enforce. The reason for this is that you have to prove the existence of a contract in order to enforce that contract. All you need to prove that a written contract exists is the original document with the signatures of the parties involved. There are some oral or verbal agreements that can be enforced. For example, if you have witnesses or other evidence that support the existence of an agreement, then the oral agreement you entered can be enforced.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"_Uses_For_Executory_Contracts\"><\/span>\u00a0Uses For Executory Contracts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The following are some of the uses f executory contracts<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\"><i><span style=\"font-weight: 400;\">Car lease:<\/span><\/i><span style=\"font-weight: 400;\"> A car dealership provides a vehicle to a consumer that is making payment to the dealership. The consumer can either return the vehicle at the end of the lease period or buy the car.<\/span><\/li>\n<li style=\"font-weight: 400;\"><i><span style=\"font-weight: 400;\">Rental lease:<\/span><\/i><span style=\"font-weight: 400;\"> A landlord provides a house or space and the consumer pays for use of the property for the time set in the contract.<\/span><\/li>\n<li style=\"font-weight: 400;\"><i><span style=\"font-weight: 400;\">Equipment lease:<\/span><\/i><span style=\"font-weight: 400;\"> A borrower pays rent to use the equipment for a set time and the renter provides the equipment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><i><span style=\"font-weight: 400;\">Intellectual property license:<\/span><\/i><span style=\"font-weight: 400;\"> The owner of the intellectual property allows a party to use the intellectual property within the licensing scope.<\/span><\/li>\n<li style=\"font-weight: 400;\"><i><span style=\"font-weight: 400;\">Development contract: <\/span><\/i><span style=\"font-weight: 400;\">A contractor and client enter into an agreement where the contractor performs certain duties for the client.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Residential lease agreements combined with an option to purchase real property is generally considered an executory contract for the conveyance of real property.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Validity_Of_An_Executory_Contract_In_Real_Estate\"><\/span>Validity Of An Executory Contract In Real Estate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In a real estate situation, a contact can only be valid if the seller provides required documents and disclosures to the buyer. If the seller fails to do this, the seller faces heavy penalties because the law vies that failure as a deceptive act or practice. The law actually allows the buyer to cancel and rescind the executory contract in this situation and demand for a full refund of all payments made to the seller. This includes the down payment plus any money spent by the buyer on any permanent improvements to the property. The law also required the buyer to \u201crestore to the seller the value of the buyer\u2019s occupation of the property\u201d after cancelling the executory contract. The buyer has the right to cancel the executory contract for any reason within 14 days.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"You_may_also_be_interested_in%E2%80%A6\"><\/span>You may also be interested in&#8230;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><a href=\"https:\/\/www.houstonbusinesslawyers.net\/verbal-contracts\/\" target=\"_blank\" rel=\"noopener noreferrer\">Verbal Agreements In Texas<\/a><\/li>\n<li><a href=\"https:\/\/www.houstonbusinesslawyers.net\/dissolve-llc\/\" target=\"_blank\" rel=\"noopener noreferrer\">How To Dissolve A Limited Liability Company In Texas<\/a><\/li>\n<li><a href=\"https:\/\/www.houstonbusinesslawyers.net\/employees-vs-independent-contractors\/\" target=\"_blank\" rel=\"noopener noreferrer\">How Do Companies Differentiate Between Employees And Independent Contractors?<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Executory Contract Real Estate Any contract in which the terms are set to be fully performed at a later date is an executory contract. Some examples of executory contracts include real estate deeds, development contracts, car lease, rental lease and more. In Texas, any contract that takes longer than 180 days is an executory contract. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":576,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/posts\/499"}],"collection":[{"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/comments?post=499"}],"version-history":[{"count":2,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/posts\/499\/revisions"}],"predecessor-version":[{"id":577,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/posts\/499\/revisions\/577"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/media\/576"}],"wp:attachment":[{"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/media?parent=499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/categories?post=499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/tags?post=499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}