An executed contract is a mutual agreement between two parties that has been completed and signed by all involved. This type of contract outlines the specific actions that each party must undertake for the agreement to be honored. When this happens, the contract has been fully executed and cannot be modified or revoked.

An executory contract, on the other hand, is a binding agreement between two parties that still requires action from either one or both of the parties in order to be fulfilled. This type of contract is not yet completed and may contain conditions which must be satisfied before it can become an executed contract. Executory contracts are commonly used in business settings where long-term agreements need to be made.