Option Limit For Executory Contracts Of Bankruptcy Enterprises

Although contract is the main form of deal, there are lots of contracts remainun-executed in bankruptcy proceedings. To bankrupt, executory contract is bothpotential debt and credit whose execution not only involve the relative party but alsoall creditors in the bankruptcy proceedings. Therefore, whether the executory contractis proper deal is deeply related to both creditors and the debtor. According to<Bankruptcy Law>, the bankruptcy trustee exercise the option to deal the executorycontracts, thus to increase or maintain the value of the bankruptcy properties, balancethe benefit of each party, improve phase out efficiency of bankruptcy enterprises andfinally achieve a smooth development of society and economy. However, article oflaw is after all too sketchy to establish a full description of option. Option ofexecutory contracts is build on sacrificing the benefit of the other party, therefore theright must be limited. In order to make contributions to improving our legislation inbankruptcy, this article, focusing on option to executory contracts by bankruptcytrustee, discusses the legal basis, manners of exercise and limit of the option toexecutory contracts by bankruptcy trustee with many methods, such as history factoranalysis, case analysis, comparative research and exemplification.The article consists of three parts: the preface, main body and conclusion.The main body consists of three chapters:Chapter one is about the definition for executory contracts, including the specialconsideration of using the word “executory contract”，criteria for definite the contractand the general information of exectuory contract option. This chapter first comparesthe word“un-executed contract” and”executory contract” and make clear the researchobject. Then, it evaluates the definition of the executory contract of China incomparison with the US bankruptcy law. In the last, by analyzing the ways of exercising the option, this chapter also construes the characteristics of the option ofexecutory contracts.Chapter two discusses the different limits of exercising executory contractoptions. The author suggests that as the option break rules of contract law; legislationshall pay attention on the various limitations of the option by bankruptcy trustee.In chapter three, the author exemplifies various contracts which may be restrictedin bankruptcy proceedings and divided them into three categories. In addition, bydrawing ideas from other countries, this chapter also emphasizes some importantexecutory contracts which is wait to be focused in bankruptcy law in China.The conclusion summarizes the whole article, summing up the conception of theoption of executory contract and clearly pointing out how to confirm whether acontract was given an option. The concluding part also generalize problems ofoption not discussed in the article, thus wish to make a contribution to thedevelopment of the executory contract system,...