Contract Rejection (Right of Receiver or Counterparty)

Summary

This practice note looks at executory contracts and the issues they can pose for court-appointed receivers and the receiver's power to address such concerns through the disclaimer of these types of agreements. It looks at the definition of an executory contract, identifies the considerations a receiver must have regard to in determining whether to affirm or disclaim a contract, including equitable considerations to the counterparty to an executory contract and the effect of rejecting such a contract. For more information on receiverships, see the {Receiverships Resource Kit}.