7 ms·

So... what? Should judges overturn all contracts they think are "unreasonable"?

• free_bip 3y ago
  I'm arguing from a moral standpoint, not a legal one.
  • nobodywillobsrv 3y ago
    The contract was conditional on price. At the time, no one thought it possible to achieve such valuation. So they deemed the payout likely to be zero i.e. 99.9% that the payout was zero. You understand? This is a bonus, conditional on performance. This is not a simple payout. The legal case MUST come up at the time of initiation of the contract else it induces moral hazard. All of Delaware is now off limits for everyone for ever now. This is like an insurance contract being voided because it was "too good of a payout" but they only void it when you get injured, your houes burns down etc becaues "oh we didn't realize it until we had to pay". But they collected premium all those years and nobody challenged it. This is incredibly immoral. It is literally moral hazard.
• ksherlock 3y ago
  Actually, yeah, judges do void Unconscionable Contracts on the regular.
• syntaxing 3y ago
  Yes? That’s a big part of the judicial system. It’s a contract, not law.