Executed a contract and then immediately realize it wasn’t the best idea?
Bankruptcy may be a solution to that executed contract.
In bankruptcy, a Debtor can assume (keep) or reject an executor contract. An executory contract is defined as a contract where upon filing of the bankruptcy, both parties have unperformed obligations such that the failure of one to perform is considered a breach of the contract.
For example, in the context of a business, you enter into an agreement to sell your business to someone in exchange for a purchase price. You later decide you can obtain a better purchase price. You can file bankruptcy and refuse to transfer the business to the buyer. Since a refusal to transfer is a breach of the contract, this contract is executor and you can reject it with a bankruptcy.
Executory contracts can also exist in the personal realm. For example, a rental lease or car lease is an executor contract. If you have one of these, you can reject them upon the filing of bankruptcy.
If you feel you have a contract you entered into that is a mistake, contact us to discuss whether it is possible to reject it.