117 Existing contracts

Pre-existing commercial contracts of the company are unaffected by entry into administration unless they contain a provision whereby they automatically terminate on a contracting party going into administration, or a provision whereby notice to terminate may be given by the other party in that event. Administrators often do not wish to continue existing contracts but, unlike liquidators, they have no power to disclaim an onerous contract, and if they resolve not to continue with a contract, a breach of contract occurs. The normal consequence is that the company is liable in damages, but if the contract has

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial