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"Exploding" the way you are referring to it really is a term related to startup funding, right? The problem is startup funding != claims/dispute resolution/lit
by will_brown 10y ago
"Exploding" the way you are referring to it really is a term related to startup funding, right?
The problem is startup funding != claims/dispute resolution/litigation.
In other words...exploading offers in funding don't have the same justification as deadlines to accept settlements. Moreover, settlement offers need deadlines because if they are not accepted the legal cost are exponentially increasing for both parties.
For example, I might try to settle a case the night before mediation and offer settlement that expires if not taken before mediation the next day, because that mediation might add $20k to my client's bill, and so an open ended settlement would allow the opposing party to force my client to incur $20k cost and then turn around and still take the deal.
- tptacek 10y agoAn exploding offer is simply one that has a deadline set so short that the recipient must accept or reject on the spot. In startup funding, they're intended to prevent you from comparing an offer to other potential offers from other investors. In the Airbnb case, they're intended to prevent you from consulting with a lawyer or further appraising your damages.
- cmurf 10y agoI'd call it a poison pill. Consider what it most likely is trying to prevent you from doing, and then go do that instead of what condition the poison pill is attached to.
- tptacek 10y agoI don't object to you calling it that, but it is literally the thing people are talking about when they refer to "exploding offers" from venture capitalists, which is the irony here.
- sk5t 10y ago"Poison pill" has a very different, established meaning in corp law. "Exploding" here hews well to the old Mission Impossible bit: "This message will self-destruct in ten seconds."