GoofGoof
Premium Member
This is a good point. I think this situation is so unique it’s unlikely to come up much in the future. A government entity is unlikely to sign this type of contract “in bad faith” because there are very few examples where a corporation completely controls that entity.Yes. But it's important to remember - a court is not typically in the business of determining if the arrangement itself is good or bad. They can get involved if the circumstances around the formation of the arrangement are sufficiently problematic enough to challenge the contract's enforceability. That (obviously) gets very complicated based on many, many circumstances. But, if a court says it's ok to enter into an agreement in xyz circumstances (in decided case law), it means, in theory, that can be done in the future in similar circumstances. And, judges will look to that "legacy".