80-4-419. Bankruptcy as grounds for cancellation.
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/mt/title-80/chapter-4/part-4/80-4-419·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
80-4-419 . Bankruptcy as grounds for cancellation.
(1)If a commodity dealer files for bankruptcy, a contract or any part of a contract for delivery of a commodity may be canceled without penalty to the producer if the cancellation involves only the remaining unperformed portions of the contract. A cancellation under this section:
(a)is not a breach of contract;
(b)is allowed even if not explicitly provided for in the contract.
(2)In the event of a cancellation, a commodity dealer remains responsible for payment that is due to the producer for delivered portions of the contract.