An example of contract law in action would be a situation where two parties enter into an agreement to buy and sell a used car.
The buyer, John, offers to purchase the car for $10,000 from the seller, Mary. Mary accepts the offer and the two parties agree on the price, the make and model of the car, and the date of delivery. This agreement creates an express contract between the two parties.
John and Mary have an executory contract as the contract has not been fulfilled yet, but both parties understand and agreed to the terms, John, as the buyer, is obligated to pay $10,000 and Mary as the seller, is obligated to deliver the car on the agreed date.