|
And, contracts are made to be broken (or renegotiated)- When I worked in the oil & gas business back in the 80's, our company got involved in what were called "take or pay" contracts (simplified - we contracted to take the gas at a set price and quantity or pay for it anyway). Well the gas market crashed and we were stuck with take or pay provisions that would have bankrupted the company - these were with companies ranging from Mom & Pop org.s to Shell, Exxon & Chevron.
We HAD to renegotiate or go under. So, that's what we did.
In this case, those contracts, if AIG had gone bankrupt, (which for most of us business owners out there without govt bailouts is what would have happened), would be worthless.
How about, in good conscience, renegotiating the provisions??
|