License Agreement Is Executory Contract; Not Maintaining Quality Is Material Breach

A trademark license agreement is an executory contract pursuant to Bankruptcy Code Section 365 where the agreement provides that a failure to maintain the quality of goods is a material breach, the U.S. District Court for the Western District of Missouri held March 21 (Lewis Brothers Bakeries Inc. v. Interstate Brand Corp. (In re Interstate Bakeries Corp.)).

In affirming the decision of the bankruptcy court, Judge Greg Kays stated that the “promise to maintain the character and quality of goods sold under the trademarks” was a material obligation that remained outstanding.

Debtor Grants License After Judgment.

On ...