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All this does hinge on whether an entity is going to be heavily penalized for failure to deliver.

Can you reference me instances of such penalities being applied?

I searched for instance and instead found this:

http://www.billcara.com/archives/2006/09/a_failure_to_de.htm...



No, it hinges on entities being held to the same standard as any other contracting party in the economy. Party A agrees to do something for party B in exchange for a sum of money, party A doesn't hold up its end of the deal, now B has a claim on A for damages suffered because of A not doing what they promised.

(technically the law is more nuanced, of course - there is a whole field in law dealing with the subtleties of this, but this is what it comes down to, and it's the same whether it's for stock or grain or a wedding dress).




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