Ring 6
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Slipped this one in while I wasn't looking(Analogy below. Take it FWIW, I won't begrudge anyone choosing to ignore it entirely)
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Example: oilheat dealers frequently hedge against the potential for rising oil prices by purchasing forward contracts from oil suppliers. This allows them to lock in a certain (hopefully lower) price by promising to purchase a certain volume of oil at predetermined prices and predetermined dates. In the event of a warm winter month, end consumers frequently consume less than was projected, and as a result the dealer is not able to meet the purchasing obligation set forth in the contract. In of itself, this would constitute breach of contract, and the dealer would be exposed to a potential lawsuit. Luckily, there is a predetermined, agreed-upon penalty for under-lifting that's written right into the contract .
Why does the dealer agree to pay this penalty? Because it is an alternative means of satisfying the purchasing obligation. Both parties recognize that there is likely to be a scenario in which one party chooses not to fulfill its obligations on the contract, and as a result they agree upon a predetermined fee that is acceptable to both of them. The result is that the contract has not been breached and they can both stay out of court and maintain a productive business relationship.
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By the same token, why do you think the NFLPA agreed to the fines and loss of free agency accrual that results from holdouts? The entire reason why these penalties exist is to shield holdouts from breach of contract liability so that every holdout doesn't end up in court. Since you seem to disagree that this is the case, I'm curious to hear what your explanation for them is.
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Frankly, that is a horrible analogy.
The oil dealer is striking a price based upon expected need, over which he has no control, and knowing this is realistic both parties agree to what to do in that event.
That is not close to similar to I agree to work for you for 5 years at salaries of X, but now I think I should get more, so I will withhold the work product I promised.
The oil analogy would be that consumers choose the price for heating oil at the beginning of the season and lockin. Then oil prices go up and the oil company refuses to deliver unless the consumer pays the higher price. If the contract states that the oil company must deduct $10 off the consumers bill for every day they do not deliver oil, then they wait 30 days until oil prices go down, and give a $300.00 credit, your arguments say Grandma cannot sue for breach of contract for the month she had no heat because the oil company chose to accept the penalty and not provide the oil that was contracted for even though it could.
THAT is the analogy that fits here.