• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Contracts/Agreements still binding after Chapter 11?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Kenneth Braasch

Junior Member
What is the name of your state (only U.S. law)? CA

In respect to automaker GM's 2009 chapter 11 bankruptcy and subsequent reorganization, I was just curious if contracts created before the corporation's bankruptcy would still be valid. In the late '90s, GM donated electric vehicles to various engineering schools across the country with the proviso that they keep them, use them only for research, and not drive them on public roads. By the turn of the new century, most schools had abandoned the cars. So, if the contracts have become null and void, which I am hoping, I want to try purchasing one of these vehicles from a school, to use for a research project. Thanks, in advance, for any help. I've looked online, but haven't been able to find anything that relates to this rather odd situation.
 


FlyingRon

Senior Member
Understand that there is more than bankruptcy in play here. Those contracts are with a GM that for practical purposes no longer exists.

I suspect if you can find a EV-1 that GM hasn't taken back possession on and can convince the school that it was somehow in their interest to risk the liability and contractual risks by selling you the car, you can try.
I'm not hopeful. My understanding is that there are NO such working EV-1's in private hands. The ones that remain out there with the exception of one at the Smithsonian, are lacking significant parts of the drive train.
 

Kenneth Braasch

Junior Member
So you're thinking that contracts with the engineering schools are still enforceable by GM?

Yes, all the cars that were donated by GM were dismantled. The project that I have in mind
has nothing to do with resurrecting the car. Maybe if I went in to a similar contract with the
school, in which I agree to not drive the car on public roads and use it only as a research tool
might work for them. Doesn't make much sense for them to have the cars wasting away out
of doors, at least in my mind.
 

FlyingRon

Senior Member
Sorry, we don't do hypotheticals . If you have a real issue with real facts, let us know. Otherwise there's not any better answer than I can give than I have already given.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top