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Thirteenth law of worker entropy: Difference between revisions
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By contrast, a [[confidentiality agreement]] is part of the traditional pre-trade appendage-measuring ritual of the pea-cocks and pea-hens of finance. You ''have'' to do it, it is meant to ''look'' spectacular, but no-one is ever seriously ''hurt'' by the experience, and nor does anyone achieve anything of lasting value out of it. Even so, the abstract ''legal'' points of an NDA can be quite intricate — for that reason, the world is awash with NDA templates riddled with schoolboy errors — even though nothing of any commercial moment has ever depended on them. It’s just a [[Commitment|commitment signal]], after all. | By contrast, a [[confidentiality agreement]] is part of the traditional pre-trade appendage-measuring ritual of the pea-cocks and pea-hens of finance. You ''have'' to do it, it is meant to ''look'' spectacular, but no-one is ever seriously ''hurt'' by the experience, and nor does anyone achieve anything of lasting value out of it. Even so, the abstract ''legal'' points of an NDA can be quite intricate — for that reason, the world is awash with NDA templates riddled with schoolboy errors — even though nothing of any commercial moment has ever depended on them. It’s just a [[Commitment|commitment signal]], after all. | ||
Thus, [[Confidentiality agreement|NDA]] | Thus, [[Confidentiality agreement|NDA]]s — even for secret-squirrel event-driven [[family office]] types — rarely get past 5 or 6 pages, and are generally cleared in days. If you get stuck on one for more than a week, it will be some other problem the business guys don’t want to face that they are blaming on the NDA. | ||
So there are local maxima and minima at play. An [[NDA]], however important, complicated, and regardless of what fanciful things you bolt onto it ([[Exclusive licence|exclusivity]], [[non-solicitation]], restraint of trade, punitive damages and so on) may generate aa few thousand pounds in billings, but even that is pushing it beyond all expectation. With a syndicated bond issue, on the other hand, you can write a ticket to the moon. | So there are local maxima and minima at play. An [[NDA]], however important, complicated, and regardless of what fanciful things you bolt onto it ([[Exclusive licence|exclusivity]], [[non-solicitation]], restraint of trade, punitive damages and so on) may generate aa few thousand pounds in billings, but even that is pushing it beyond all expectation. With a syndicated bond issue, on the other hand, you can write a ticket to the moon. | ||
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===Worked example=== | ===Worked example=== | ||
Take a USD500m loan. Even 0.05% of the deal value — as mere 5 [[basis point]] | Take a USD500m loan. Even 0.05% of the deal value — as mere 5 [[basis point]]s — is USD250,000. Is it any wonder the service economy is in such rude health? Who ''wouldn’t'' pay that to make sure nothing went wrong on half a yard of debt finance? | ||
But even at USD500 an hour, that is ''five full working weeks'' of a [[legal eagle]]’s time:<ref>At 40 hours per week. Yes, we know that nowadays a transatlantic lawyer can expect to recover more billable hours per week than there actually are in the week, but we are assuming traditional laws of spacetime apply.</ref> it really wouldn’t do if all that was required was to top-and-tail the term-sheet with [[boilerplate]] and bang out an enforceability [[Legal opinion|opinion]]. Nor would there be much prospect of stopping clients going to some other guy down the road who will do the job in a day and send a bill for a £500. | But even at USD500 an hour, that is ''five full working weeks'' of a [[legal eagle]]’s time:<ref>At 40 hours per week. Yes, we know that nowadays a transatlantic lawyer can expect to recover more billable hours per week than there actually are in the week, but we are assuming traditional laws of spacetime apply.</ref> it really wouldn’t do if all that was required was to top-and-tail the term-sheet with [[boilerplate]] and bang out an enforceability [[Legal opinion|opinion]]. Nor would there be much prospect of stopping clients going to some other guy down the road who will do the job in a day and send a bill for a £500. | ||
So — well, have a butcher’s at this [https://www.ise.ie/debt_documents/ListingParticulars_cd8daa3f-24e8-419a-819a-cf3e23a03271.PDF this 370-page beauty] and allow me to rest my case on it, since it plainly wouldn’t fit ''in'' it. Quarter of a mill well spent. | So — well, have a butcher’s at this [https://www.ise.ie/debt_documents/ListingParticulars_cd8daa3f-24e8-419a-819a-cf3e23a03271.PDF this 370-page beauty] and allow me to rest my case on it, since it plainly wouldn’t fit ''in'' it. Quarter of a mill well spent.<ref>We have NO idea how much the legal fees on this were, and it may be wildly defamatory to imply it was that much. Of course it could have been more.</ref> | ||
{{sa}} | {{sa}} | ||