My company had a contract with a French company for exclusive distributorship of our products. The contract was valid for 3 years and then it was set to be automatically renewed unless a notice given. Now three years are over but the French company is in the debt restructuring stage. It seems the contract cannot be cancelled during this stage (bankruptcy). Is that true? They continue to claim to be our exclusive distributors but we do not do any business with them. What are my options?
Clive Sherman
Answer
Before you get too far into your "options" Things to think about: What law governs the contract? French or US/Iowa? Who drafted the contract? What court was the bankruptcy filed in? Is the contract for goods or services? What about CISG? Bankruptcy law in what country? Are you owed money? Do you owe them money? Secured or unsecured creditor? These are all things you have to get to the bottom of before you can exercise any "options". There's homework to attend to.
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