Agreement Executory

contracts for the lease of non-residential real estate and the lease of aircraft or spare parts, the DIP or the trustees may decide at any time to accept or reject it until a Chapter 11 plan is confirmed. According to the Second Circle, the interests of the debtor «are of the utmost importance in the balance of control.» So what is an executable contract? The concept is quite simple. It is a contract between a debtor and another party, for which both parties still have important results. In other words, if a party terminates the performance of the treaty, it would be an actual breach of contract. When a contract is concluded, the conditions must be met immediately after the contract has been signed by all parties. If it is an enforceable contract, the conditions of the treaty will at some point be fulfilled in the future. With the exception of commercial real property leases (treated differently – stay on another item in this area), performance contracts must be accepted or refused within sixty days of the filing of the application for insolvency in a Chapter 7 liquidation case and before the date of confirmation of a reorganization plan in a Chapter 11 case. . .

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