Black Hole Apparitions

Abstract

This Comment on Choi, Gulati and Scott’s (CG&S) black hole trilogy introduces the concept of Black Hole Apparitions, provisions that are indistinguishable from true black holes, yet raise few, if any, of the social-cost related problems that CG&S associate with black holes. It then draws on this concept to explore some of the problems of implementing their proposed doctrinal response to the black hole problem. Along the way the comment explores other possible responses to the problem and concludes by suggesting that the experience of other industries suggests that black holes might be a transitory problem in the development of certain types of markets rather than a permanent feature of the way they respond to adverse judicial decisions.

Keywords: contracts, contract interpretation, commerical law, sovereign debt

JEL Classification: K12