As part of is activity, CI&CL is promoting a research entitled “Treatment of Executory Contracts in Insolvency Law: A Comparative Study”. This study currently involves researchers from 36 different jurisdictions from all over the world, and all 5 continents. It aims at adopting a genuinely global perspective, which takes due account of all contributors’ various legal traditions.
The treatment of executory contract is particularly controversial in insolvency law. While it is commonly accepted that the terms of a contract cannot be unilaterally modified in solvent times – unless otherwise agreed in the contract itself -, the situation is way more complex when an insolvency procedure is ongoing. Some countries recognize to the debtor wide latitude in reshaping his obligations, while other adopt a more conservative approach.
As a preliminary step, this study’s target is to map the existing rules in the considered jurisdictions. Results will be disseminated at a conference, which will be held in London on April 6, 2017. However, the purpose of the research is more ambitious. Every researcher will highlight in their national reports:
- The main “drivers” of reform in this area of insolvency law (e.g. compliance to international or regional rules or organizations; need to secure international funds or political support; desire to boost national competitiveness and international attractiveness; etc.);
- The principal supporters of these reforms at national, regional and international level;
- The main trends (at national level) in the evolution of the treatment of executory contracts and contractual remedies agreed by parties in solvent times.
The intermediate goal of this study is to collect hard evidence on the above-mentioned topics, and to agree on a set of criteria against which discuss the choices operated by policy-makers at national level.
The medium-to-long term purposes are to improve or facilitate the application of the law in the considered countries (national recommendations), and challenge ongoing trends and established policy recommendations by adopting a pro-active approach towards legal reform in the area, not only at national, but also at international level (general guidelines).
The purpose of this presentation is to inform the audience of the establishment of this group, to invite other experts interested in doing research on the subject to join both the study and the group, and to disseminate the preliminary results of the study.