Gatekeeper Contract and Vendor Management Glossary

Search common contracting language and take a deeper dive to discover what each means

Liquidation

Liquidation often occurs as a result of Insolvency, the formal dissolution of a business by the sale or transfer of its assets to pay a debt.

Insolvency means the business cannot  pay its obligations when they are due, so when Liquidation occurs any money left is used to pay shareholders. 

Alternatively, a solvent business can be liquidated if it no longer wishes to continue trading.