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They will sell to a company that specializes in store liquidation instead of attempting to run a store closure sale themselves.The parties who are entitled by law to petition for the compulsory liquidation of a company vary from jurisdiction to jurisdiction, but generally, a petition may be lodged with the court for the compulsory liquidation of a company by: The grounds upon which one can apply for a compulsory liquidation also vary between jurisdictions, but the normal grounds to enable an application to the court for an order to compulsorily wind-up the company are: A "just and equitable" winding-up enables the grounds to subject the strict legal rights of the shareholders to equitable considerations.Liquidation usually occurs in connection with the breakup or dissolving of the company, although it can happen for various other reasons besides the termination of the business.Compulsory business liquidation is where the business is required to begin liquidation according to a court order.In the case of construction contracts, courts have occasionally refused to enforce liquidated damages provisions, choosing to follow the doctrine of concurrent delay when both parties have contributed to the overall delay of the project.Contracts in the NEC3 family use the term 'low service damages' (optional clause X.17) and generally include a Low Service Damages Schedule.In addition, the term "liquidation" is sometimes used when a company wants to divest itself of some of its assets.

For example, suppose Neil Townsend agrees to lease a store-front to Richard Smith, from which Richard intends to sell jewelry.

One reason for this is that the enforcement of the term would, in effect, require an equitable order of specific performance.

However, courts sitting in equity will seek to achieve a fair result and will not enforce a term that will lead to the unjust enrichment of the enforcing party.

This type of liquidation may be requested through the courts by: In contrast, voluntary liquidation is where the business members or leaders deem it necessary to dissolve the company, begin the wind-up phase, and liquidate the assets.

The company needs to pass a resolution, which is usually passed by vote, at which point the business may also cease normal operations.

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