executory contract


Also found in: Wikipedia.

executory contract

A contract under which one or more parties has not yet completed their performance.

Mentioned in ?
References in periodicals archive ?
In filing a motion to compel the assumption or rejection of a lease, the bankruptcy court will consider the "reasonableness" of the limit on the time for the debtor's assumption/ rejection determination, The determination of what constitutes a reasonable time to assume or reject a particular executory contract is within the bankruptcy court's discretion and has to be decided in light of the particular facts of each case, Among the factors that the courts have used to determine what may constitute "reasonable time" for the purposes of Section 365(d)(2) of the Bankruptcy Code are the following:
assume or reject any executory contract or unexpired lease of the debtor." (82) Despite granting DIPs these important powers, the Bankruptcy Code does not define "executory contract." (83) Section 365's legislative history also contains woefully little guidance on the Drafters' intentions.
Courts following Rosenfeld sometimes argue that a condominium declaration is not usually an executory contract. (41) It creates a servitude, which is a property interest.
(38) The term "executory contract" originates from the American context.
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."
The supply agreement is likely an "executory contract" under the Bankruptcy Code, which has generally been interpreted by courts as a contract under which material performance remains due from both parties.
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.
(117) Under [section] 365 of the Bankruptcy Code, a debtor-in-possession or trustee of the bankruptcy estate is allowed to reject any executory contract, so long as it finds that it is beneficial to the estate.
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.