A Chapter 11 bankruptcy doesn't involve the business liquidating all of its assets; the business continues to operate and the debts are just reorganized. If they want to liquidate all of their assets, they should file a Chapter 7 bankruptcy, which is a lot less expensive anyway.
Common law governs contracts for services as well as contracts not otherwise governed by the UCC. It is important to recognize the elements of common-law contract formation because they are more stringent than the requirements for formation between merchants under the UCC.
