Legal Question in Business Law in New Jersey
Licensee, Licensor Agreement
If there is an Licensee, Licensor contract signed between two parties, and the Licensee is closed down by factors and files for bankruptcy, does this make the contract null and void?
Thank you
2 Answers from Attorneys
Re: Licensee, Licensor Agreement
Not necessarily. If the licensee filed a Chapter 11 bankruptcy, they would have the right to assumee or reject the contract subject to a hearing and court approval. If the licensee filed a Chapter 7 petition, then the contract is automatically deemed rejected if, after 60 days post-bankruptcy filing, the Chapter 7 trustee does not assume or reject the contract.
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Re: Licensee, Licensor Agreement
I'm not a bankruptcy expert, I think your answer is in the hands of the Licensor. Licenses are usually executory contracts which the Licensor can reject or assume during bankruptcy. Under Section 365 of the Bankruptcy Code you have to wait to see what the Licensor does and then you have certain options if they choose to reject.
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