3 ms·

There's no law capping monetary damages at $1B and you can't enter into a contract limiting the government's ability to do much of anything unless the other par

by pc86 4y ago

There's no law capping monetary damages at $1B and you can't enter into a contract limiting the government's ability to do much of anything unless the other party is the government. So even if the contract caps monetary damages (it doesn't), no court would follow that.

kgermino 4y ago
Not sure why you'd need a specific law. I'm not an expert (or lawyer) but damage caps are a pretty common feature of big contracts and AFAIK they're perfectly enforceable. The legal commentary I've seen on this deal states that monetary damages are capped at $1B (and actual damages would obviously be much higher) so the two outcomes are basically 'Musk forced to buy Twitter' and 'Musk pays Twitter $1B' without much in between. Assuming the lawyers who took the time to read the contract know what they're talking about it would be a pretty big surprise for the Delaware Chancery to throw out the contract and award higher monetary damages.