Final answer:
A contract is described as executory when both parties have yet to complete their obligations under the terms of the contract, and this can be complicated by imperfect information about the exchanged goods or services.
Step-by-step explanation:
When the terms of a contract have not yet been fully performed by both parties, the contract is best described as executory. A contract is described as executory when both parties have yet to complete their obligations under the terms of the contract, and this can be complicated by imperfect information about the exchanged goods or services.
An executory contract implies that the parties have set obligations that they are yet to fulfill. This situation can sometimes be further complicated by imperfect information, a scenario where each party may be uncertain about the qualities or aspects of what is being exchanged or might not have all the relevant information at hand. This lack of information could affect the performance and the continuing obligations under the contract.