| Commentary

337 Existing contracts

| Commentary

337 Existing contracts

Pre-existing commercial contracts of the partnership are unaffected by entry into administration1. 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 partnership is liable in damages, but if the contract has a proprietary aspect, the court has a discretion whether to order specific performance. In addition, if the administrator uses goods supplied to the partnership for the purposes of continued trading, he

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