Executed and Executory Contracts.

Contracts may be classified, in terms of the extent to which they have been performed, as executed contracts and executory contracts.

(a) Executed Contracts. An executed contract is one that has been completely performed. In other words, an executed contract is one under which nothing remains to be done by either party. A contract may be exe­cuted at once, as in the case of a cash sale; or it may be executed or per­formed in the future.

(b) Executory Contracts. In an executory contract, something re­mains to be done by one or both parties. For example, if a utility company agrees to furnish electricity to a customer for a specified period of time at a stipulated price, the contract is executory. If the entire price is paid in ad­vance, the contract is still deemed executory; although, strictly speaking, it is executed on one side and executory on the other.

Bilateral and Unilateral Contracts.

In making an offer, the offeror is in effect extending a promise to do something, such as to pay a sum of money, if the offeree will do what the offeror requests. If the offeror extends a promise and asks for a promise in return and if the offeree accepts the offer by making the promise, the contract is called a bilateral contract because one promise is given in exchange for another and each party is bound by the obligation. For example, when the house painter offers to paint the owner's house for $1,000 and the owner promises to pay $1,000 for the job, there is an exchange of promises and the agreement gives rise to a bilateral contract.

In contrast, the offeror may offer to do something only when something is done by the offeree. As only one party is obligated to perform after the contract has been made, this kind of contract is called a unilateral contract. This is illustrated by the case of the reward for the return of lost property because the offeror does not wish to have promises by members of the public that they will try to return the property. The offeror wants the property and promises to pay anyone who returns the property. The offer of a unilateral contract calls for an act and a promise to do the act does not give rise to a contract.

FACTS:

Cook took employment with Heck's Inc. Some time thereafter she was fired. She brought suit against Hecks's for breach of con­tract. She claimed that the contract was to be found in the employer's manual that was given to her in which the employer stated the terms of employment and of employment security.

DECISION

The employment provisions of the employer's manual constituted the offer of a unilateral contract because the employer was seeking the performing of work in return for the promises in the handbook. This offer was accepted by Cook's continuing to work at Heck's, Once accepted, the terms of the manual bound Heck's by a contract, [Cook v Heck's Inc. ___ WVa ___, 342 SE2d 453 (1986)]

Quasi Contracts.