What is the key factor that distinguishes executed contracts from executory contracts?

The key factor that distinguishes executed contracts from executory contracts is that executed contracts are those in which all parties have fulfilled their promises, resulting in a completed agreement. In contrast, executory contracts are those in which some or all obligations remain unfulfilled by one or more parties. The distinction hinges on whether the terms of the contract have been fully satisfied.

When a contract is executed, it implies that the rights and obligations specified within it have been completed and that the contract has served its intended purpose. On the other hand, an executory contract indicates that the parties still have outstanding duties to perform; the deal is not fully realized until those remaining obligations are met. This understanding is pivotal for assessing the status of contractual relationships and determining the next steps if disputes arise or if fulfillment is delayed.

Other factors like minimal performance, total damages, or the number of parties involved may play a role in contract discussions but do not define whether a contract is executed or executory. These elements are secondary to the central principle of performance fulfillment that characterizes the distinction between the two types of contracts.