Mamutse, BC (2018) Balancing unequal trading relationships: transaction avoidance precepts as a route to a new end? Journal of Business Law, 6. ISSN 0021-9460

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Abstract

In the field of insolvency law, the transaction avoidance regime protects creditors from improper actions of insolvent debtors. There is however increasing public awareness that the solvency of small business creditors may be stretched by actions of their larger debtors. This undermines governmental measures to support small businesses. It also has negative implications for the transaction avoidance regime, which has undergone expansion through the Small Business, Enterprise and Employment Act 2015 reforms. The value of these reforms is deflated where small businesses have entered administration/liquidation because their finances have been overborne by the trading practices of larger partners, and established insolvency law remedies for overturning transactions cannot be invoked to return any lost value to the estate. The absence of such remedies, together with the weakness of other mechanisms relied on for the protection of smaller businesses, lead this paper to propose that tenets of transaction avoidance law offer a route to discerning circumstances in which contractual arrangements with large counterparties should be unravelled in the interests of strengthening the protection of small businesses.

Item Type:	Article
Additional Information:	Published version accessible via Legal Journals Index on Westlaw UK
Uncontrolled Keywords:	1801 Law
Subjects:	K Law > K Law (General)
Divisions:	Law
Publisher:	Sweet and Maxwell
Date Deposited:	06 Oct 2017 08:53
Last Modified:	04 Sep 2021 11:08
URI:	https://researchonline.ljmu.ac.uk/id/eprint/7293

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