148) In the bankruptcy context, such an outcome turns on whether an arbitration clause may be deemed a separate executory contract
that may be assumed or rejected independently of the contract in which it is embedded.
Although its meaning has been disputed in both the literature and the jurisprudence, American courts have largely agreed that a situation would be characterized as an executory contract
where both parties have outstanding obligations and a party's failure to perform would be a material breach.
For a "US person" to sign such an executory contract
before Implementation Day would be dealing in property or an interest in property involving Iran or a Specially Designated National, which is prohibited by current US regulations as applicable to "US persons.
Given the prevalence of executory contract
liabilities and materiality of their amounts for many accrual-method businesses, as well as the widespread use of the recurring-item exception to accelerate deductions, taxpayers would be wise to review their current treatment of prepaid and accrued expenses that are subject to the all-events test, for consistency with the Tax Court's decision.
GST is not payable more than once by reason that the consideration is received in connection with an executory contract
which involves more than one supply.
27) The Code does not define what constitutes an executory contract
is an executory contract
, and federalism issues regarding treatment of
For "Type B" leases (mostly executory contract
real estate leases and a few short-term executory contract
equipment leases), the liability is accounted for using effective interest amortization, which imputes interest expense, while the amortization of the asset is a "plugged" amount that ensures a level total lease expense over the lease term.
137) Under section 365 of the Bankruptcy Code, a debtor is authorized to assume or reject an executory contract
with the approval of the court.
For the lessee, FASB and the International Accounting Standards Board (the boards) have proposed a right-of-use model that is a hybrid form of the executory contract
Since the federal bankruptcy code does not (1) specifically recognize the dealer protection provisions of the ADFA; and (2) include specific protections/compensation for franchisees that are injured through executory contract
termination, Gonzalez determined that the merits of the case should be decided through sole reliance on the provisions of U.
1) Although not every license agreement is an executory contract
(that is, an agreement where material unperformed obligations of the parties exist as of the bankruptcy filing), (2) most bankruptcy courts treat intellectual property licenses and technology agreements as executory contracts
, as we will do for purposes of this article.