How does a failed business honor contracts once they are closed?
Full Question:
If we sign a two year contract with our company, and the company subsequently shuts down operations, will the company have to honor our contract?
01/12/2007 |
Category: Contracts |
State: Maryland |
#362
Answer:
The answer to your question depends on why the company shuts down operations. ;In case of bankruptcy, honoring the contract will depend on the type of bankruptcy (e.g., Chapter 11 or Chapter 13) and whether there are sufficient assets to honor the contract.
