[Direct answer]In the Beijing area, the decision-making power lies with the administrator. For contracts that have not been fully performed by both parties, after entering bankruptcy, the administrator can choose between continuing to perform the contract and terminating it. If the administrator decides to continue the performance, the other party must perform the contract and may request a guarantee. If no guarantee is provided, it shall be deemed that the contract has been terminated. If the administrator fails to notify the other party within two months from the date of acceptance of the bankruptcy application, or fails to respond within 30 days from the date of receipt of the reminder, it shall be deemed that the contract has been terminated. Entering bankruptcy does not automatically invalidate the contract, but the fate of your contract enters the "administrator's clock": a two-month silent period and a 30-day reminder period. Active reminders can lock in the outcome in advance.

I. Problem Background and Typical Scenarios

The equipment supplier had just signed the contract when the client company was declared bankrupt; the goods were in transit, the payment hadn't been made, and the deposit had already been paid—the declaration of bankruptcy was like a sudden stop, requiring every step of contract performance to be recalibrated in terms of both targets and pace.

II. Key points of dispute

First, the right of the administrator to choose whether to perform the contract. Second, the rules regarding the time when the contract is deemed to be terminated. Third, the guarantees and payments for continued performance. Fourth, the declaration of claims for the part of the contract that has already been performed.

III. Professional analysis by Henglue Lawyers

The first layer concerns the manager's right of choice and commercial logic: In bankruptcy proceedings, the manager has the right to decide whether to terminate or continue to perform contracts that have not been fully performed by both parties (pending contracts). Whether to continue or terminate depends on the manager's commercial logic: contracts beneficial to the bankruptcy estate (sales contracts where the buyer has paid the advance payment, or procurement contracts with favorable pricing terms) are continued, while burdensome contracts (with heavy payment obligations or market-price inversions) are terminated. For enterprises, understanding the manager's position can predict the fate of their contracts - first determine whether the contract is an asset or liability for the "bankruptcy estate pool", then decide whether to issue a notice or wait. The second layer involves two timeframes: The manager's decision to terminate or continue to perform is not indefinitely suspended - if no notice is given to the other party within two months from the date of acceptance of the bankruptcy application, it is deemed terminated; if the manager decides to continue to perform after that, or fails to respond to the other party's notice within 30 days, it is also deemed terminated. The waiting party is not a passive observer: promptly issuing a written notice can trigger the 30-day countdown in advance. If the two-month silence period expires automatically, the consequences of termination are handled according to the rules, with payments and deposits converted into bankruptcy claims - the initiative of the timeline can be taken back from the manager through prompt notice. The third layer concerns the arrangement of consideration for continued performance: If the manager decides to continue to perform, the other party has the right to request a guarantee, and failure to provide one is deemed termination - this converts the "risk of continued performance" into a bargaining chip for guarantee negotiations. At the same time, if the manager continues to perform, the payments made by the other party after performance are classified as beneficial debts (debts generated for the common interests of all creditors), which can be repaid at any time and take priority over ordinary debts - under the state of continued performance, your payment status is at the "beneficial debt level", which is vastly different from the pro-rata repayment of ordinary debts after termination. This is why transactions with remaining performance capabilities should strive to continue to perform and closely monitor payment deadlines. The fourth layer concerns the red lines before and after bankruptcy acceptance: After the court accepts the bankruptcy application, the debtor's repayment to individual creditors is invalid, and all settlement, offset, and guarantee arrangements entered into must be re-examined - individual repayments within six months before bankruptcy acceptance (advance repayments to individual creditors, supplementary guarantees) are at risk of being revoked; contractual offset rights in bankruptcy have special exercise rules (if the debtor owes a debt before acceptance, offset claims can be asserted under certain conditions); cross-procedure contract disputes often involve four battlefields of performance, declaration, revocation, and offset simultaneously. First, determine the contract's status (fully performed, unperformed by both parties, partially performed by one party), then position it separately - fully performed contracts do not enter the manager's right of choice and are directly handled according to creditor-debtor declaration, which is the first step of classification.

IV. Practical suggestions and legal basis

The first step is to confirm the time of bankruptcy acceptance and classify and locate the contract status. The second step is to initiate the 30-day clock for timely written reminders of pending contracts. The third step is for the administrator to select contracts to be continued and require guarantees, while locking in the repayment of common-benefit debts. The fourth step is to declare claims on schedule when they are released or become invalid, and to track arrangements for exclusion and set-off. The main legal basis: Articles 16, 18, 32, and 40 to 42 of the Enterprise Bankruptcy Law of the People's Republic of China; the specific application shall be subject to the currently effective provisions.

5. Henglue Law Firm's Reminder

The three key points of bankruptcy performance: When the fate of the contract is handed over to the administrator, the two-month silence and the 30-day reminder serve as two yardsticks; continued performance requires guarantees, and the payment of the debt will be upgraded to a common benefit debt that can be cleared at any time; the red line is clearly drawn before and after acceptance, and the creditor's declaration is not subject to waiting periods. This case was handled by Beijing Henglu Law FirmXue SuhuaThe lawyer (practice certificate number: 11101201211769926, subject to the certificate issued by the judicial administrative organ) acts as the agent. For contract disputes involving bankruptcy proceedings, you can contact us through the following channels:Business and contract disputes in enterprisesThe service provides a comprehensive solution, which involves the integration of creditor's declaration and enforcement executionCreditor's rights and debts, and enforcementFor reference, you can refer to the section on corporate risk management in the documentSpecial servicesFor inquiries regarding cross-border bankruptcy matters, please consult the relevant column\nFinancial capital and cross-border transactions involving foreign entitiesTeam.

VI. Frequently Asked Questions

Q1: If the other party goes bankrupt, does the contract automatically become invalid?

No. The administrator decides whether to terminate or continue to perform the contract that neither party has fully performed; if the administrator remains silent within the statutory period, it shall be deemed that the contract has been terminated.

Q2: What should I do if the manager never replies to me?

The countdown of 30 days for the written reminder begins, and failure to reply within the time limit shall be deemed as a rescission; the same shall apply if no notification is made within two months after the acceptance of the request.

Q3: Can we prioritize receiving the payment for the goods that we continue to fulfill our contractual obligations for?

The administrator decided to continue to perform the contract, and the funds generated from the other party's performance of the contract are considered beneficial debts, which can be repaid at any time and have a much higher status than ordinary bankruptcy claims.

Q4: What should I do with the deposit I've already paid?

After the contract is rescinded, the payments already made will be converted into bankruptcy claims, which will be declared according to the procedures and repaid according to the proportion of ordinary claims.

Q5: Can the repayments made before bankruptcy be recovered?

There is a risk of revocation of the repayment to individual creditors within the past six months before acceptance, and the specific review will be conducted in accordance with the rules on the right of revocation in bankruptcy cases.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers about specific situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit. →Business and commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.