Continuity of Business
/kəˌnænɪkəl tɜrm ˌkɒntɪˈnjuːɪti ʌv ˈbɪznəs/
Definitions
- (n.) The legal and operational principle ensuring a business can continue functioning through significant changes, such as ownership transfer or restructuring, maintaining contracts, licenses, and regulatory compliance.
The continuity of business clause allowed the company to maintain its contracts despite the merger.
- (n.) In bankruptcy law, the concept that a debtor entity maintains its core operations and commercial identity without interruption during insolvency proceedings.
The court emphasized continuity of business to preserve value for creditors during the liquidation process.
Forms
- continuity of business
Related terms
See also
Commentary
Often referenced in contracts and bankruptcy contexts; precise drafting is critical to ensure obligations and rights survive ownership or structural changes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.