Non-Executory Contract Sample Clauses
A Non-Executory Contract clause defines an agreement in which both parties have substantially performed their obligations, leaving no significant duties remaining for either side. In practice, this means that the contract is largely completed, and any remaining actions are minor or administrative rather than material to the agreement. The core function of this clause is to clarify the status of the contract, which can be important in contexts such as bankruptcy proceedings, where the distinction affects whether the contract can be assumed or rejected by a debtor.
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Non-Executory Contract. The Parties agree that it is their intention that the Agreement shall not be treated as an executory contract under the federal bankruptcy laws. If, however, a court determines, despite the specific stated intention of the Parties, that the Agreement is executory, then for purposes of assuming or rejecting the Agreement, the Agreement shall not be severable, but rather must be assumed or rejected in its entirety. If rejected, the Party whose interest is subject to the federal bankruptcy court shall be deemed in default under this Agreement and shall relinquish all of its rights, titles and interests to the other Party or Parties in the proportion of their interests at such time.
Non-Executory Contract. This Agreement is the governing instrument of the Company and shall not be deemed to be an executory contract or otherwise subject to section 365 of Title 11 of the United States Code.