Final answer:
An executed contract is fully performed at closing, while an executory contract is still in process and not yet complete by both parties.
Step-by-step explanation:
An executed contract is a legally binding agreement that has been fully performed by both parties at closing. This means that all obligations and conditions specified in the contract have been met. For example, if two parties have entered into a contract for the sale of a house and both parties have completed all necessary actions, such as signing the necessary documents, transferring the title, and exchanging payment, then the contract is considered executed.
On the other hand, an executory contract is a contract that is still in process and not yet fully complete by both parties. In an executory contract, one or both parties still have obligations to fulfill before the contract is considered executed. For instance, if two parties have entered into a contract for a construction project and one party has started the work but has not yet completed it, then the contract is considered executory.