3 ms·
Unlike a student loan, I could simply refuse to pay back the 3%. In the relatively unlikely case a court held the contract valid, I could shed it in bankruptcy
by ispivey 17y ago
Unlike a student loan, I could simply refuse to pay back the 3%. In the relatively unlikely case a court held the contract valid, I could shed it in bankruptcy.
The downside case is much better with the "3% equity in a person" investment than a student loan.
- frig 17y agoYou're right, I didn't want to broach enforceability issues but you're right. If true it'd only further contribute to the adverse selection effect: the ability to easily shuck the obligation will do more to draw out people you don't want to invest in than to ring in superstars who otherwise might say no.