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I have mixed feelings on this. On the one hand, it's still playing within the legal rules of the business system. And one might expect sophisticated lenders to
by CoastalCoder 3y ago
I have mixed feelings on this.
On the one hand, it's still playing within the legal rules of the business system. And one might expect sophisticated lenders to account for this possibility in their contracts and financial terms. I.e., to price in this risk.
On the other hand, it's at odds with my intuitive notion of honorable conduct. On a personal level, I see obligations to others as carrying moral weight.
- lotsofpulp 3y agoImagine everyone doing this, all the time. That is what it is like living in a low trust society, such as many developing countries. Simple transactions cost far more, take way more time. Lots of resources wasted in vetting, and lots of price premiums to account for inevitable losses due to corruption.
- londons_explore 3y ago> account for this possibility in their contracts And it's easy to do... "If you are late paying the due amount, even by one day, then the amount payable increases by 25% immediately, followed by 5% more each day until paid". That way if anyone plays chicken with anyone else by paying late, at least when bankruptcy proceedings are begun the payable total will be far larger, and so a bigger piece of the pie will be theirs.
- nikanj 3y agoYou are unable to force them to pay $100 million but have cleverly written contract clauses that cause them to owe you $125 million now. Which they're also not paying.