Breaking A Contract Or Filing Bankruptcy Essay

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People should always try to avoid breaking a contract or filing bankruptcy if they can. Before you sign any contract you should always read very carefully or you could end up signing your life away. There are many rules when filing bankruptcy that could end up ruining your credit history and credit chance in the future. Could bankruptcy help you out of a business contract? Contracts are made every day and there are many parts of a contract. When entering into the music industry record label companies have you sign contracts. The contract usually favors the record label company stating things like the record label company can drop you at anytime but you can no terminate your contract. The contract also states that you have to make a certain amount of records, however it can take many years to make these records. When you sign a written contract you are fully accepting the terms of the agreement you are signing. The reason for written contracts is so they cannot be denied in the event the agreement does not work out. You cannot terminate the contract if it states the contract cannot be terminated.
There are many rules and regulations to bankruptcy. A bankruptcy can be voluntary or …show more content…

The people involved with the contract could sue you for terminating a contract for the terms and conditions of the contract. In the event that a music group/ musician would try to file a bankruptcy as their attorney, I would let the group know the complications that could happen along the way. If the group accumulated a large amount of debt in a short amount of time there is still a chance that a judge would deny the bankruptcy request. When and if the bankruptcy was denied the record label company could drop the group and they would be stuck with a lot of debt. If they did go through with the bankruptcy and won our case there is a chance that another record company would not want to pick them up for a record

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