continuing with the transaction proposed in example 6 both the owner of the facility 566866

Continuing with the transaction proposed in Example 6, both the owner of the facility and Scania sign a contract in which they promise to transact—to sell and purchase the facility—one year later. Such an exchange of promises is an executory contract, an exchange of promises for mutual performance in the future that neither party has yet begun to perform. In the executory contract described in this example, Scania has acquired the rights to the future benefits arising from the facility, but the contract is unexecuted by both the facility owner (who must relinquish control of the facility) and Scania (who must pay the agreed purchase price). Executory contracts are typically not assets or liabilities until one or both of the contracting parties begin to complete their contractual obligations.