If a business goes bankrupt, why can they open another business?

You want to license a software from a young company (Y Co) in Singapore. What assurances can you receive on service continuity, either contractually or otherwise, in the event that Y Co either gets bought out by another company, or goes out of business?

  • Answer:

    You can have a source-code escrow agreement. Y Co would work with a third party escrow service that would hold onto their source code. If whatever event occurs that triggers the escrow, you'd get a copy of the code.

Paul Unterberg at Quora Visit the source

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Other answers

Yes. Put an escrow agreement in place. Also ensure that source code in escrow is the version you need to sustain operations. There are many cases were the source code in escrow is: a really really old and obsolete version OR a version with missing key patches encrypted or in a form not usable cannot be build because of missing libraries, proprietary tools and components Good luck!

William Emmanuel Yu

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