In this case, I’d guess that for many parties, signing an assurance contract is about as expensive up-front as signing a contract, since they need to set aside resources to fulfill their commitments—e.g. banks need to earmark some cash, a contractor needs to not accept alternative jobs, or a renter needs to not sign another lease.
Mmm. So maybe part of the thing is the contract needs to be an exploding contract (i.e. gives everyone maybe a week to read and sign, so they don’t need to tie up their resources too long), but then also exploding contracts are super annoying and everyone hates them and also institutions literally can’t move that fast. So you’re back to square one.
In this case, I’d guess that for many parties, signing an assurance contract is about as expensive up-front as signing a contract, since they need to set aside resources to fulfill their commitments—e.g. banks need to earmark some cash, a contractor needs to not accept alternative jobs, or a renter needs to not sign another lease.
Mmm. So maybe part of the thing is the contract needs to be an exploding contract (i.e. gives everyone maybe a week to read and sign, so they don’t need to tie up their resources too long), but then also exploding contracts are super annoying and everyone hates them and also institutions literally can’t move that fast. So you’re back to square one.