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If a Corporation Goes Bankrupt,which of the Following Has First

question 217

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If a corporation goes bankrupt,which of the following has first claim on the firm's assets?


Definitions:

Previous Valid Obligation

A duty or commitment that has been legally recognized and must be fulfilled as previously agreed or contracted.

Novation

The act of replacing an old obligation with a new one, thereby extinguishing the original obligation.

Consideration

In contract law, the benefit or value that each party agrees to give or receive as part of a legal agreement.

Satisfaction

The fulfillment of a need or desire; in a legal context, the discharge of an obligation or debt.

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