This chapter considers the treatment of executory contracts upon the default of a debtor company under U.S. law and the main factors behind the most recent reforms in the area. In the United States, the Bankruptcy Code regulates the insolvency procedures. The Bankruptcy Code attempts to empower the trustee or the debtor in possession to take advantage of the rights and assets of the bankruptcy estate. The power to assume or reject executory contracts constitutes a pivotal power in restructuring insolvency procedures. Thus, Section § 365, as construed and interpreted by the Federal Courts, provides more protection to the bankruptcy estate than to the non-debtor party which has limited protection.