"Executory contracts and unexpired leases" [2019] ELECD 2084; in Lubben, Stephen (ed), "American Business Bankruptcy" (Edward Elgar Publishing, 2019) 58

Book Title: American Business Bankruptcy

Editor(s): Lubben, Stephen

Publisher: Edward Elgar Publishing

Section: Chapter 5

Section Title: Executory contracts and unexpired leases

Number of pages: 11

Abstract/Description:

Contracts and leases have the character of both assets and liabilities. Section 365 of the Code gives the trustee the ability to convert all of the debtor’s “bad” contracts into claims against the estate. That is, the trustee can breach the agreements, effective as of the petition date. The trustee also has the power to perform or assume the “good” contracts. Good contracts that the debtor is unable to perform itself can be assigned in many cases to a party that can perform them. Special statutory rules apply to union collective bargaining agreements, and certain retiree benefits.