The agreement is executory, making A correct. An executory contract is one in which material obligations remain to be performed. Signing may create binding obligations, but the buyer has not yet paid the final purchase funds, the seller has not yet delivered the deed, and closing conditions may remain outstanding.
An executed contract, in the contract-classification sense, is one whose required performance has been completed. Candidates must not confuse “the parties executed the document,” meaning they signed it, with the technical distinction between an executed and executory contract.
Massachusetts Board curriculum explicitly identifies executed versus executory as a required contract classification and separately recognizes purchase-and-sale agreements as core contracts used by licensees.
“Non-recourse” relates to borrower liability in financing and has no bearing on whether a purchase agreement remains to be performed.
The source set repeats this concept because it is a common exam trap: signed but not completed = executory.
Study Guide Reference: Contracts — Purchase and Sale Agreements; executed versus executory contracts.
