Bankruptcy as a Trigger for Contract Termination – Separating Myth From Reality and How to Protect Your Organization Better

Author(s): Phil Bode

Failure to understand the impact of the Termination Due to Bankruptcy clause can have a detrimental impact on your contract and your organization. Understand the impact of this clause and learn how to improve contract and business risk management techniques.

Tips to minimize the impact of vendor bankruptcies: keep contract terms short, consider non-bankruptcy termination triggers, conduct robust ongoing due diligence, review business continuity plans, and split needs between vendors where feasible.

Tags

bankruptcy, termination, breach of contract, business risk, third-party risk management, contract risk

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