Unexpired Agreement

The subsection (g) defines the period from which the refusal of an outstanding contract or lease constitutes a breach of contract or relationship. As a general rule, the offence is from the date immediately before the date of the petition. The aim is to treat claims of refusal as claims. The rest of the subsection indicates different periods for cases converted from one chapter to another. The provisions of this subsection do not constitute a material authorization for violation or rejection of an adopted treaty. On the contrary, they impose the rules of service or notification of claims in the event of a breach of an adopted contract or when a case is turned into a Chapter 7 case where the contract is refused, in accordance with Chapter 11 where a contract has been accepted. D. Several contractual documents may constitute a single agreement for acceptance purposes. The courts have held that two or more contracts, essentially inseparable, can and should be considered as one indivisible agreement.

In re Atlantic Computer Sys., Inc., 173 B.R. 844, 849-55 (S.D.N.Y. 1994) (six agreements duly constituted a contract for the purpose of p. 365); In re Karfakis, 162 B.R. 719, 725 (Bankr. E.D. Pa. 1993). Acceptance or refusal of enforcement contracts is most important for corporate debtors, as companies have far more outstanding contracts than individual debtors, and such contracts often become more difficult over time, particularly collective agreements, as the recent bankruptcy of General Motors has shown.

But even for individuals, the inability to refuse contracts can prevent or reduce the debtor`s new start. For most contracts, the agent relies on the Business Judgment Standard, which balances the benefits and liabilities of the contract against the mass of bankruptcy, regardless of the non-debtor party, and most courts support this standard. It is only if the agent is wrong about the consequences of the rejection that the courts will approve. There is an important exception to the non-receiving of the non-debtor party, and that is for collective agreements. That`s not the case. (h) (1) pub. L. 98-353, 402, amended from p. 1 in general. Before the amendment, paragraph 1, it states: “If the agent refuses an outstanding lease of the debtor whose lessor is the lessor, the taker may, in the context of such a tenancy agreement, treat the lease as having been terminated or, alternatively, for the remainder of the term of such a tenancy contract and any extension or extension of that term , which is enforceable by this tenant under current bankruptcy law remain in possession. Subsection h) protects the debtor`s real estate tenants if the agent refuses an expired tenancy agreement in which the debtor is the lessor (or tenant).