Opinion ID: 688599
Heading Depth: 2
Heading Rank: 2

Heading: Executory Contracts

Text: 15 The issue of whether a contract is executory within the meaning of the Bankruptcy Code is a question of federal law. In re Wegner, 839 F.2d 533, 536 (9th Cir.1988). Although not defined in the Bankruptcy Code, courts have generally described an executory contract as one in which some performance is due on both sides. Id. 16 In this case, the option agreement was clearly not executory; Myers exercised the option and fulfilled its contractual obligation by tendering the stock. See In re Easebe Enters., Inc., 900 F.2d 1417, 1419 (9th Cir.1990) (noting that options are generally executory contracts until the option is exercised). Likewise, the stipulation was not executory; Weatherite made the payments to Myers and the escrow account before the bankruptcy was filed. The fact that a condition remained prior to the payout of the escrowed funds does not render the stipulation executory. Therefore, we conclude that the option agreement and stipulation were not executory contracts that terminated by operation of law.