A right provided to the debtor under Section 365 to rid itself on a prospective basis of executory contracts and unexpired leases that the debtor believes are not beneficial to the bankruptcy estate. Rejection of an executory contract or unexpired lease is treated as a prepetition breach of the contract or lease by the debtor, entitling the non-debtor party to a damages claim for the breach.
Bankruptcy Code ยง 365(a). See also Assumption and Assignment of Executory Contracts and Unexpired Leases, Landlord Claim.