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These contracts are private, as long as neither party seeks to break the deal - then no regulatory agency will intervene. Jane would be fighting a long battle
by lumost 6y ago
These contracts are private, as long as neither party seeks to break the deal - then no regulatory agency will intervene. Jane would be fighting a long battle with BigCo.
In terms of economic bindings in the contract. It's possible to require Jane to have a nominal loan equal to the market value of the property due to BigCo. Jane would need to both claim ownership (hard), break out of the loan (harder), or go bankrupt.
- yokaze 6y ago> These contracts are private, as long as neither party seeks to break the deal - then no regulatory agency will intervene. Not sure about the US, but in many parts of Europe, contracts are subject to law, and cannot override it. But new laws can override existing contracts. I assume it is the same in the US, because all US contracts I saw contained an "Invalid Clauses"-clause: https://www.lawinsider.com/clause/invalid-clauses https://www.lawinsider.com/clause/invalid-clauses Aren't there any rules on loans in the US too? To my knowledge, there are strict limitations as to bundling of services. > Jane would be fighting a long battle with BigCo. Or not. If the case is clear cut.
- lumost 6y agocontracts are subject to law but minimal regulation. Bank loans are regulated - B2B load arrangements minimally so. My point was that Jane and BigCo have aligned incentives - as long as they aren't actually breaking a law then the contract will hold. Variable Interest Entities and similar loan arrangements are legal. Hedge funds regularly "lend" assets through hypothecation etc.