Bankruptcy Law Question: Executory Contracts Assumption

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thischarmingman
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Bankruptcy Law Question: Executory Contracts Assumption

Postby thischarmingman » Sat Dec 03, 2011 4:50 pm

So, § 365 seems to suggest that when assuming after default, or when assigning in general, you need to provide adequate assurance of future performance. My question is, if there has been no default and you are not assigning, is adequate assurance of future performance required? A plain reading of the code says no.

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Ludo!
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Re: Bankruptcy Law Question: Executory Contracts Assumption

Postby Ludo! » Mon Dec 05, 2011 10:14 pm

That's right, adequate assurance of future performance is only required when you're assigning the K. The nonDr party is being forced to deal with a stranger to the original K, so they need protection. If it's just an assumption and there's no default, the nonDr party doesn't need special protection.




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