74 Minn. L. Rev. 227 (1989-1990)
A Functional Analysis of Executory Contracts

handle is hein.journals/mnlr74 and id is 235 raw text is: A Functional Analysis of
Executory Contracts
Jay Lawrence Westbrook*
TABLE OF CONTENTS
Introduction  ...........................................  228
I. The Problem .......................................... 231
A. The Fundamentals of Bankruptcy Contracts .... 231
B. Recent History ................................... 233
1.  Context  .......................................  233
2. Traditional Approaches ....................... 234
3. The Material Breach Test .................... 236
C. The Current Difficulties ......................... 239
II. Functional Analysis ................................... 242
A.   The  Basics ........................................  247
1. What makes Contracts Unique in
Bankruptcy? .................................. 247
2. Nonbankruptcy Law .......................... 249
3. The Limitation of Remedies in Bankruptcy.. 252
B. Specific Performance ............................. 255
C. An Interest in the Thing Itself ................... 257
D. Step-By-Step Analysis ............................ 263
1. Debtor As Buyer .............................. 263
2. Debtor as Seller .............................. 268
E. Impact of the Avoiding Powers .................. 270
F.  Discharge   .........................................  275
G. Assumption and Rejection: Deciding to Perform
or  Breach  .........................................  280
H. Summary of the Functional Approach ........... 281
III. The Pernicious Effects of Executoriness ............. 282
* Andrews & Kurth Centennial Professor of Law, The University of
Texas at Austin. This article is respectfully dedicated to Professor Vern Coun-
tryman, whose work is the standard for all of us who labor in the vineyards of
commercial law. Development of the concepts in this paper has been greatly
aided by conversations with Elizabeth Warren and Douglas Whaley. I am es-
pecially grateful to my colleague Douglas Laycock for his comments on earlier
drafts. I am also indebted to James M. Bettis for indefatigable help with the
research, as well as to David Hurst for all his assistance in recent months.

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