What Effect Does Bankruptcy Have on a Contract

question 12

Multiple Choice

What effect does bankruptcy have on a contract?

• A)The bankrupt's contractual liabilities are transferred to a trustee and all obligations both past and future are discharged.
• B)The bankrupt's contractual liabilities are transferred to a trustee and the bankrupt is no longer required to perform their contractual obligations.
• C)The bankrupt's rights,but not their obligations,are transferred to a trustee.
• D)The bankrupt is in breach and the contract comes to an end.

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Definitions:

Temperature Rises

Temperature rises refer to the increase in the thermal energy of a system, which can result in changes in physical state, reaction rates, and physical properties.

Activation Energy Barrier

The minimum energy required for the reactants to undergo a chemical reaction and form products.

Particle Collision

An event where two or more particles come into contact with enough energy to cause a reaction or exchange of properties.

Successful Collisions

Interactions between reactant particles that result in a chemical reaction, dependent on factors like orientation and energy.