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Stiffing people you owe money to is not 'cutting costs'. That's called 'being a deadbeat.'
by Finnucane 4y ago
Stiffing people you owe money to is not 'cutting costs'. That's called 'being a deadbeat.'
- mytailorisrich 4y agoThey'll pay. This is an aggressive negotiation tactic as they are trying to renegotiate leases.
- spoils19 4y agoExactly. This makes Elon Musk smart, as no one has ever tried not paying rent in order to negotiate before. Wonder why not many people try to do that.
- mytailorisrich 4y agoI know nothing about commercial real estate but I suspect this is something that does happen as I doubt they have just come up with a groundbreaking new negotiation tactic.
- Apocryphon 4y agoI think (I hope) they are being sarcastic.
- HappySweeney 4y agoAs far as I understand, commercial real-estate leases are iron-clad contracts and not open to renegotiation until expiry. Failure to pay rent can easily result in a quick court judgement which allows the landlord to lock the doors, or via the remedy of distraint (as it's called in Ontario) enter the premises and start grabbing stuff in order to sell it off and recoup losses. Maybe things work differently in SF?
- Finnucane 4y agoSince he seems to be trying to turn it into a dorm at the same time, maybe looking for a residential deal?
- mytailorisrich 4y agoWell of course that's the legal, textbook position. In practice the commercial reality may be different: potential financial impact on landlord of not getting rent, costs of legal remedies, current market situation (what happens if they need to find a new tenant), etc. I'm sure Twitter/Musk have agents/lawyers who know the commercial real estate business.
- guax 4y agoYes, Elon lawyers are incredible at contract law. I could not think of one example on where they failed him on that.
- lost_tourist 4y agoIsn't this just part of the "Art of the Deal" ?