Luke and Grace have an executory contract for the sale of some goods. Luke files for bankruptcy and is then discharged by the bankruptcy court. Luke has no obligation to perform under the contract with Grace.

Question

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In bankruptcy, a discharge releases the debtor from personal liability for certain debts, meaning they are no longer legally required to pay them. This can include executory contracts, which are often rejected in bankruptcy proceedings.

Luke and Grace Have an Executory Contract for the Sale