In the Dutch case referenced, what was the conclusion of the court regarding the debtor's obligation?
Understand the Problem
The question is asking about the conclusion reached by a Dutch court regarding the obligations of a debtor in a specific legal case. It seeks to clarify which option accurately reflects the court's decision.
Answer
Trustees may 'passively' default, but not 'actively'.
The Dutch court concluded that a trustee is permitted to 'passively' default but not to 'actively' default, indicating that a debtor must comply with contract terms that require them to act.
Answer for screen readers
The Dutch court concluded that a trustee is permitted to 'passively' default but not to 'actively' default, indicating that a debtor must comply with contract terms that require them to act.
More Information
The distinction between passive and active default in bankruptcy is crucial because it determines the extent of the trustee's obligations during insolvency procedures, impacting the debtor's duty to perform specified actions within contracts.
Tips
A common mistake is confusing the roles of a debtor and trustee in default scenarios. It's important to note the specific obligations set by contracts.
Sources
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