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Netting opinion: Difference between revisions
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[[Netting opinion]]s tend to be long, academic, laden with hypotheticals, appealing to [[Latin]]ate principles of civil law and demanding of unusually skilled powers of comprehension and patience — they are required by regulation to be, in fact — but when it comes down to it, they all say the same thing: that close-out {{tag|netting}} is, ultimately, enforceable: because a [[netting opinion]] would have no reason to exist if it said anything else. | [[Netting opinion]]s tend to be long, academic, laden with hypotheticals, appealing to [[Latin]]ate principles of civil law and demanding of unusually skilled powers of comprehension and patience — they are required by regulation to be, in fact — but when it comes down to it, they all say the same thing: that close-out {{tag|netting}} is, ultimately, enforceable: because a [[netting opinion]] would have no reason to exist if it said anything else. | ||
And so, the netting opinion will say what you know to be true, at gruesome length, clothed in ambiguity and decorated with its own peculiary vocabulary. For example, to utter the following confection in any other context would be to invite a bunch of fives, but it will go unchallenged in a Continental netting opinion: | |||
:“According to legal literature, [[forward contract|forward contracts]] (''marchés a terme'') are [[synallagmatic]] (that is, the parties enter into mutual commitments, each binding itself to the other) and onerous contracts (that is, one party gives or promises something as a [[consideration]] for the commitment of the other party) and contain an [[aleatory]] element (''contrat aléatoire'').”<ref>What this seems to be saying is these arrangements involve [[mutual obligations]] and [[consideration]] — in other words, they are “legal [[contract|contracts]]”, and the parties address themselves to a chance (“[[aleatory]]”) element outside their mutual control: that is, they’re “''[[derivative]] [[contract]]s''”.</ref> | :“According to legal literature, [[forward contract|forward contracts]] (''marchés a terme'') are [[synallagmatic]] (that is, the parties enter into mutual commitments, each binding itself to the other) and onerous contracts (that is, one party gives or promises something as a [[consideration]] for the commitment of the other party) and contain an [[aleatory]] element (''contrat aléatoire'').”<ref>What this seems to be saying is these arrangements involve [[mutual obligations]] and [[consideration]] — in other words, they are “legal [[contract|contracts]]”, and the parties address themselves to a chance (“[[aleatory]]”) element outside their mutual control: that is, they’re “''[[derivative]] [[contract]]s''”.</ref> | ||