On The Exercise Of The Option To Executory Contracts In The Bankruptcy Law

After the distressed company enters bankruptcy proceedings,often faces the problem of how to deal with a large number of executory contracts.The bankruptcy trustee can exercise the right of option to such contracts and decide whether to continue performing the contract.In recent years,there are more and more real estate enterprises applying for bankruptcy due to the impact of macro regulation and financing cost factors.There are also a large number of executory contracts in such bankruptcy cases.It is manifested in a large number of home sales contracts that have not been completed by both parties,the treatment of this part of the executory contract is directly related to the issue of the protection of the right to life and the security of transactions.Although Article 18 of the Bankruptcy Law of the People's Republic of China imposes relevant regulations to the option of executory contracts of bankruptcy trustee,but compared to the insolvency legislation of the developed countries such as the United States and other countries,the Bankruptcy Law in China is very simple to the option of executory contracts.The exercise of the option to executory contracts are not limited and the legal consequences of exercise of the option to executory contracts are not yet clear,which brings many difficulties to bankruptcy practice.For this reason,this article starts with the real estate bankruptcy cases,takes the exercise of the right to choose the contract as the research subject,to In-depth analysis the fundamental theories of the option to executory contracts,the necessary restrictions when exercising the right to choose,and the legal consequences of the exercise of the option to executory contracts.I look forward to contributing to the development of bankruptcy law in our country.