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On the executory contract in bankruptcy law

Author: XingYuZuo
Tutor: JiZongRu
School: University of Foreign Trade and Economic
Course: International law
Keywords: Bankruptcy Law Purposes of Bankruptcy Law Executory Contract
CLC: D922.291.92
Type: Master's thesis
Year: 2006
Downloads: 189
Quote: 2
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Abstract

This article discusses the purposes of the bankruptcy and the reason why bankruptcylaw should enact special regulations of executory contracts. By comparing the rules ofPRC with the equivalent part of US Bankruptcy law, I analyze the definition ofexecutory contracts and the principles and methods to deal with such contracts.Finally, I provided some legislation advises to bankruptcy law of our country. In myopinion, Executory Contract is a kind of contract concluded before filing ofbankruptcy under which the obligations of both the bankrupt and the other party to thecontract are so far unperformed that the decision of assumption or rejection made bytrustee could benefit the estate. Limiting the freedom of contract, changing thepurposes of contract and rearranging the procedure of contract performance are themethods to devise the regulation of Executory Contract so as to achieve the goal ofthe bankruptcy law. The function of Executory Contract is to save the transaction costincurred in the procedure of bankruptcy and to balance the cost of both he bankruptand the other party to the contract. The bankruptcy court, together with trustee,decided the specific methods to deal with executory contract in order to reach thepurposes of the bankruptcy law with high efficiency based on the principles of“business judgment”, “heavy burden” and “balancing.” Following the discussion ofthe whole article, I give some legislation advises on the executory contracts based onthe analysis of the disadvantages of applicable bankruptcy law of our country.

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