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Series

Boilerplate

Property Law and Real Estate

Articles 1 - 2 of 2

Full-Text Articles in Law

Sovereign Debt And The Three And A Half Minute Transaction: What Sticky Boilerplate Reveals About Contract Law And Practice, Andrea Boyack Oct 2013

Sovereign Debt And The Three And A Half Minute Transaction: What Sticky Boilerplate Reveals About Contract Law And Practice, Andrea Boyack

Faculty Publications

The Three and a Half Minute Transaction: Boilerplate and the Limits of Contractual Design, by Mitu Gulati and Robert E. Scott, is a cautionary tale about modern legal practice where the protagonist is the standard sovereign debt contract. The book discloses an undeniable flaw in sovereign bond boilerplate (the widely used pari passu clause) that, in spite of expensive, sophisticated lawyering, perpetuates a risky disconnect between party intent and contract terms. The fact that boilerplate terms persist even in elite sovereign-lending practices suggests that the problem of over-reliance on standard form language is ubiquitous.When contract terms diverge from client risk …


Dragnet Clauses: Fischer V First Int’L Bank, 2003, Roger Bernhardt Jan 2003

Dragnet Clauses: Fischer V First Int’L Bank, 2003, Roger Bernhardt

Publications

This article discusses a California case which held that a boilerplate “dragnet” clause in a deed of trust did not defeat the borrower’s claim that the bank’s other loans to the borrower were not cross-collateralized.