Question

Wrong Deck. Penny hires Jackson to paint the back deck on her house. She agrees to pay him $200 for the job and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then realized that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, he expects all of his funds from Penny. What was the status of the agreement between Jackson and Penny as of Tuesday when they agreed upon the price for the job?

Answer 1

This was an executory contract because neither party has fulfilled their contract obligations (consideration). In other words, the contract has not been fulfilled yet, and both parties are still responsible for performing their contract obligations.

Even after Jackson mistakenly painted the neighbor's deck, the contract remains as executory since neither party has performed their obligations.