Reply to post: Re: If you wish to be a capitalist, you have to abide to capitalism rules

Elon Musk's cost-cutting campaign at Twitter extended to not paying rent, claims landlord

MachDiamond Silver badge

Re: If you wish to be a capitalist, you have to abide to capitalism rules

"Which include honoring contracts even after an acquisition"

If Elon is ever in a position to buy another company, he may find himself needing to renegotiate every contract and agreement on day one. Utilities will be locked out. Landlords will seal the doors and other suppliers will cease supplying until those new agreements are in place. Some may require hefty deposits and security pledges.

He's not going to be able to use his argument that the previous management entered into those contracts to absolve himself. Corporations have a status that makes them a quasi-individual for many purposes. Elon would have had to wind down the affairs of the previous entity and start a wholly new company to have any chance of ducking out and even that wouldn't work in nearly every case. Judges won't wear that sort of thing.

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