duPont v. Standard Arms Co.

Citations

• 9 Del. Ch. 315
• 81 A. 1089
• 1912 Del. Ch. LEXIS 27

Syllabus

<p>On termination by the receiver of an insolvent corporation of a preexisting contract for the services of another as general manager, the latter is entitled to no damages therefor; the possibility of such termination being impliedly within the contemplation of the parties when the contract was made.</p> <p>The appointment of a receiver for a corporation does not dissolve it, or terminate its legal existence, but suspends the rights and powers of the officers to continue the business of the corporation.</p> <p>A receiver is not bound by the executory contracts of the corporation over whose property he is appointed, and subject to the control of the Court he may abandon and repudiate them if in his opinion it would not be profitable or desirable to adopt and perform them, and he is entitled to a reasonable time within which to make his election.</p> <p>A contract made with a corporation for personal services is terminated by the appointment of a receiver for the corporation and as against other creditors the employee is not entitled to payment under the contract after having been discharged by the receiver.</p>