Contracts Commons^™

Think Twice Before You Sign! An Experiment On A Cautionary Function Of Contractual Formalities, Monika Leszczynska

Faculty Scholarship

Contractual formalities, such as handwritten signatures, have long been viewed as serving a cautionary function that protects individuals from entering ill-considered agreements. With the rise of digital contracting, it is uncertain whether online forms of assent can play the same role. In an incentivized laboratory experiment, four modes of contract confirmation were compared: clicking “OK,” typing one’s name, entering a PIN code (analogous to a qualified e-signature), and handwritten signing. The study examined how these methods affect choices between smaller–sooner and larger–later rewards. Results show that participants were more impulsive when confirming by clicking “OK” or typing their name than …

Deemed Acceptance, Not Deemed Consent: Nonvoting Stakeholders And A Uniform Conspicuousness Standard For Opt-Out Third-Party Releases, Zach Cavagnaro

Student Scholarship

After Harrington v. Purdue Pharma, the fight over third-party opt-out releases has shifted from whether consent is necessary to what consent means. The Supreme Court held that the Bankruptcy Code does not authorize non-consensual nondebtor releases outside 11 U.S.C § 524(g), and—critically—left out what exactly counts as consent. The fight over consent is expected to command a lot of litigation, so a simple, uniform conspicuousness standard for nonvoting stakeholders’ opt-out releases can help alleviate litigation costs and focus on the definition of consent. This Comment argues that courts should evaluate consent through a unified, contract-law-grounded conspicuousness standard calibrated to the …

Mobility-Restricting Covenants In Business Contracts: The Case Of Franchising, Francine Lafontaine, Lorenzo G. Luisetto, J.J. Prescott

Articles

Several studies show that restrictive covenants in employment contracts, such as non-compete agreements, may affect employees in detrimental ways, including by reducing mobility and suppressing wages. While such concerns are real, these clauses also have the potential to serve legitimate business purposes by helping companies protect valuable information, which can encourage investment and training and enhance social welfare. This paper explores the use of several types of covenants, including non-competes but also confidentiality and post-relationship non-recruitment clauses, in franchise contracts, an important and accessible category of business contracts. Many of these contracts impose restrictive covenants on franchisees but also on …

Zhang V. Zhang, 142 Nev. Adv. Op. 45 (June 18, 2026), Nathan Mackay

Nevada Supreme Court Summaries

Even when a party has violated their disclosure requirements, a district court must analyze the Young factors before issuing a discovery sanction that effectively terminates the case with prejudice.

Comment On Opm’S Confidential Government Information Nondisclosure Agreement, Rachel Arnow-Richman, Mark Fenster, Jonathan F. Harris, Margaret B. Kwoka, Orly Lobel

UF Law Faculty Publications

This comment critically responds to the U.S. Office of Personnel Management's (OPM) May 2026 proposal to implement a government-wide nondisclosure agreement (NDA) for federal workers. Drawing from our scholarship on workplace governance, employee mobility, whistleblowing, and information controls, we argue that the OPM’s proposal is inconsistent with growing recognition of the risks associated with broad workplace secrecy agreements. Recent federal and state reforms limiting the use of NDAs recognize that such agreements can deter reporting, suppress information of public concern, and impede litigants and government actors from prosecuting wrongdoing. TThese concerns are especially salient in the context of public employment, …

Disclosure Duties And Responsibilities, Gregory Klass

Georgetown Law Faculty Publications and Other Works

Contract disclosure rules differ in structure, function, and design. Though scholars often treat all these rules under the rubric of duty, in fact they fall into two broad categories. Disclosure duties treat the failure to disclose as a legal wrong; disclosure responsibilities attach positive legal consequences to disclosure but do not treat nondisclosure as a legal wrong. Disclosure duties can be further divided. Specified disclosure duties, which typically apply to consumer and other mass-market transactions, provide detailed guidance regarding both what information to disclose and how to disclose it. Generic disclosure duties, such as the tort of nondisclosure, provide broad …

The Continuum Of Contractual Commitment, David Snyder

Scholarly Articles in Law Reviews & Journals

Contracts frequently call for one or more differentiated levels of contractual commitment. Although contractual liability in the common law is said to be strict liability, and a claim that a good attempt was made is said to be no defense, often a party promises only to try. Contract theory in the United States struggles with departures from the paradigm of strict liability, and it has failed to fully consider the continuum of contractual commitment. To encompass the range of assent-based commitment and its consequent liability, U.S. contract theory needs to distinguish more clearly between (1) promises to try, which do …

Inexcuseable? Building An Artificial Intelligence Microexpert On Contract Excuse Doctrine, Mark Edwin Burge

Faculty Scholarship

This article details and advocates for a general methodology for creating a "microexpert" grounded in a user-defined set of legal sources and widelyaccessible tools for integrating generative artificial intelligence (AI) into legal analysis. The study focuses particularly on background contract excuse doctrines of impossibility, impracticability, and frustration of purpose, which are collectively a methodologically challenging area of law to rationalize due to factintensive variables that undermine their predictability. Particular challenges include assessing the foreseeability of the event that led to the contract's nonperformance, the extent of the hardship or burden on the party seeking excuse, and the purpose of the …

Cardozo Law Introduces New Course On Theatre Law, Benjamin N. Cardozo School Of Law

Cardozo Law News Archive

Cardozo School of Law introduced Theatre Law, the first law school course devoted entirely to the legal framework of the live stage industry. Taught by Adjunct Professor Ben Feldman, the course explores contracts, intellectual property, labor relations, licensing, financing, and other legal issues unique to theatrical productions, providing students with specialized training in entertainment law.

Bauer V. Beamon: Clothing Equitable Rescission’S Flexible Nature In A Rigid Straitjacket, Hunter Canfield

Arkansas Law Notes

Fraudulent deals, shady contracts, and questionable transactions occur daily. But when the truth is not disclosed and deceit seeps into the heart of a transaction, is there recourse for those affected? Historically, courts of equity have provided remedies where legal relief often fails. For instance, consider a home buyer who, after closing, discovers previously undisclosed toxic mold or structural defects that compromise the property’s habitability. Monetary damages alone may not truly restore the home buyer—especially if the property’s condition is so severe that the buyer would never have purchased the home had the truth been disclosed. In precisely these situations, …

Reverse Breakup Fees And Antitrust Approval, Albert H. Choi, Abraham L. Wickelgren

Law & Economics Working Papers

The paper examines the antitrust implications of use of reverse breakup (termination) fees in mergers. By promising to pay a reverse breakup fee to the target if the proposed merger does not get the necessary antitrust approval, the acquirer can signal to the antitrust authority that the merger is more likely to be pro-competitive. A large reverse breakup fee can also function as a commitment device by the acquirer to spend more resources in case the merger is challenged by the antitrust authority. While the first, signaling function is efficiency enhancing, the second, commitment function can lead to an efficiency …

Bankrupt Crypto Organizations, Kara Bruce, Christopher K. Odinet, Andrea Tosato

Faculty Scholarship

This Article provides the first comprehensive analysis of the intersection between decentralized autonomous organizations (DAOs) and American bankruptcy law. DAOs are blockchain-based entities that enable individuals to pursue common goals using decentralized decision-making and automated governance. Since their recent emergence, DAOs have proliferated dramatically—with over 20,000 organizations managing over $20 billion in assets and engaging in activities ranging from investment management to real estate and even attempting to purchase historic copies of the U.S. Constitution. Yet like any other organization, DAOs can fail, creating an urgent need to understand what happens when unstoppable code meets immovable bankruptcy law.

Our investigation …

Brief Of Amicus Curiae Contract Law Scholar Gregory Klass In Support Of Plaintiffs-Appellees, Climate United Fund V. Citibank, N.A., No. 25-5122 (D.C. Cir. Feb. 9, 2026)., Gregory Klass

Georgetown Law Faculty Publications and Other Works

In early 2025, the EPA sought to freeze grant funds that had been distributed from the Greenhouse Gas Reduction fund and then sent recipients notices purporting to terminate awards. Recipients sued in District C out, claiming that the EPA’s actions failed to comply with the APA, the US Constitution, and other generally applicable laws. In response, the government argued that the plaintiffs’ claims were contractual in nature and so, under the Tucker Act, belonged in the Court of Federal Claims.

This amicus brief to the DC Court of Appeals sitting en banc addresses the government’s argument that reinstating the grants …

Brief Of Amicus Curiae Gregory Klass In Support Of Respondents In Veolia Water Technologies, Inc. V. Antero Treatment Llc, No. 2025sc21 (Colo. Jan. 20, 2026)., Gregory Klass

Georgetown Law Faculty Publications and Other Works

In September, 2025, the Colorado Supreme Court granted certiorari in Veolia Water Tech. v. Antero Treatment to resolve the following question: “Whether the economic loss rule bars a fraud claim when the parties were in a contractual relationship, the fraud claim seeks the same relief as the plaintiff’s contract claim, and the fraud concerns the defendant’s performance under the contract.”

This scholar’s amicus brief addresses four questions under Colorado law: (1) Does an exploratory contract to determine whether a transaction is desirable prevent liability in tort for fraud in the inducement of the principal contract? (2) What is the significance …

From Contracts To The College Football Playoffs: Stephen Harper’S Unlikely Path To Iu Athletics, James Owsley Boyd

Keep Up With the Latest News from the Law School (blog)

On Monday night, as the Indiana University football team takes the field with a national championship on the line, Stephen Harper ’11 will be where tens of thousands of IU alumni wish they could—on the sidelines of Miami’s Hard Rock Stadium.

For Harper, Indiana’s chief operating officer for athletics, the moment is the culmination of a journey that began far from packed stadiums and playoff spotlights. Before contract negotiations, NIL policy, and Big Ten championship trophies, Harper was a high school English teacher and basketball coach at Bloomington North High School.

Library E-Book Licensing And State Law Reform, Kincaid Brown

Law Librarian Scholarship

Libraries don’t “buy” most e-books the way they buy print books; they license them. That reality is at the crossroads of budgetary constraints and patron satisfaction in modern libraries. With print, a library typically pays once, owns the copy, and lends it until it wears out. With e-books, publishers and intermediaries, like platforms such as OverDrive, commonly offer time-limited or loan-limit-ed terms (for example, a license that expires after a set number of checkouts or after a set period), can impose embargoes, and can set prices far above consumer retail. Libraries argue these terms frustrate their public mission and make …

Teaching Contracts: My Journey With Spellbook And Ai Pedagogy, Gregory M. Duhl

Faculty Scholarship

I am integrating Spellbook, an AI tool for contract drafting and review, into my first-year law school Contracts course in Spring 2026. Although Spellbook is highly effective, its educational value hinges on the pedagogical framework structured around it, a framework typically not licensed along with AI tools. In-house instructional design expertise can provide this framework, and the professor-instructional designer partnership offers one model for successful AI integration. Strong tools paired with robust instructional design yield learning experiences in which AI augments, rather than supplants, the cultivation of legal judgment and critical thinking. This collaborative approach, among educators, instructional designers, and …

Liability For Non-Disclosure In Ipos, Albert H. Choi, Kathryn E. Spier

Articles

A privately-informed entrepreneur may withhold material information from prospective investors who may sue the firm ex post for (alleged) non-disclosure. Absent liability, the entrepreneur has an excessive incentive to withhold bad news and pursue socially-wasteful projects. Liability deters inefficient non- disclosure and prevents capital misallocation. Any damage award received by investors is partially offset by a reduction in equity value. Depending on the likelihood of court error and litigation cost, the socially-optimal damage award may be either zero or the minimum necessary for full deterrence. The private incentive to waive liability may be socially excessive or insufficient. Positive and normative …

Read But Not Understood? An Empirical Analysis Of Consumer Comprehension In Homeowners Insurance, Daniel Schwarcz, Brenda J. Cude, Kyle D. Logue, German Marquez Alcala

Articles

Modern contract law assumes that consumers meaningfully assent to the standard forms that govern their daily lives. However, this assumption is widely regarded as a legal fiction for two key reasons: first, most consumers do not read standard forms, and second, even those who do often struggle to fully comprehend their terms and implications. Although the lack of consumer reading has been well documented through empirical research, consumers’ ability to comprehend standard-form contracts has received surprisingly little attention.

This Article addresses the latter issue by empirically examining whether providing excerpts from the dominant standard-form homeowners insurance policy improves consumer understanding …

Do-It-Yourself Reparations, Martha M. Ertman

Faculty Scholarship

The magnitude of harms like white supremacy makes it difficult to precisely identify losses, let alone remedy them. Piecemeal approaches are essential, and private efforts may be the only option when public law and cultural norms deny or perpetuate the harms. This Article addresses one racial harm, the 10:1 racial wealth gap between white and black Americans, in the context of residential segregation over the past century. It contends that the equitable doctrine of restitution enables us to recognize and remedy the unjust enrichment enjoyed by white Baby Boomers caused by private law mechanisms such as racially restrictive covenants, all …

Shaping Corporate Behavior Through Enforcement: Evidence From The No-Poach Initiative, Lorenzo G. Luisetto

Law Faculty Articles and Essays

In recent years, government entities have pursued legal action against restrictive clauses in employment contracts that limit labor mobility and may stifle competition in both labor and product markets. To date, however, little is known about how firms respond to enforcement actions aimed at regulating the relationships they have with their employees. Leveraging a sample of 293 franchisors, in this paper I investigate the spillover effects of the so-called “No-Poach Initiative,” an unprecedent enforcement action launched by the Antitrust Division of the State of Washington Attorney General’s Office in January 2018. This initiative resulted in 237 franchisors (39 of which …

Global Supply Chain Resilience In Emerging Technologies: A Case Study Of Bitcoin Mining, Kishanthi Parella, Carla L. Reyes

Scholarly Articles

The United States has put into motion bold plans in critical and emerging technologies to bolster its national and economic security.  For example, the federal government created a national bitcoin strategic reserve and a stockpile of other cryptocurrency; while several states have committed to or are considering similar goals.  However, the security of these reserves is dependent on two types of supply chains within the Bitcoin mining industry: analogue supply chains, relating to the physical components needed for Bitcoin mining, and data supply chains, relating to the complex and layered logistical network of actors that create input into …

Designing Contract Modification, Albert H. Choi, George G. Triantis

Articles

For long-term commercial contracts, modification tends to be the norm rather than the exception. While modification often takes place in response to an arrival of new information, contracting parties frequently modify the terms in response to a shift in bargaining power. In this Article, we explain how the flexibility to renegotiate in response to a shift in bargaining power can facilitate long-term contracting and thereby beneficial reliance investments and risk allocation. The prospect of modification can induce contracting parties who expect their bargaining power to improve, such as from the emergence of outside opportunities, to enter into contracts earlier and …

Merger Remedies Unbound, Dhruv Aggarwal, Albert H. Choi, Geeyoung Min

Articles

How should foundational contract law doctrines apply to corporate mergers? This Article argues that recent changes in Delaware law grant parties expansive contractual freedom to define their preferred remedies in merger agreements, untethered from the limits imposed by traditional contract law. A new provision in the Delaware corporate code, or the Delaware General Corporation Law (DGCL), permits penalty clauses in merger agreements, notwithstanding the traditional “anti-penalty doctrine” that forbids punitive liquidated damages in contracts. Delaware courts have also shown deference to specific performance provisions, treating them as presumptively enforceable commitments instead of retaining their traditional judicial discretion over the choice …

Good Faith And Certainty In Contract Law, Marcus Moore

All Faculty Publications

Does a general principle of good faith create too much uncertainty in  Contract Law? This article provides in-depth consideration of the controversy around this question.Reviewing a number of common arguments and reasonswhy good faith is said to be too uncertain, and responses to these, the article finds a complex picture rather than a simple answer. Recent Canadian experience with recognising a general principle of good faith in contractual performance suggests that at least two further details are critical to the potential for uncertainty: first, whether good faith operates as a freestanding duty or instead functions as a unifying principle that …

1981, Carliss N. Chatman

Faculty Journal Articles and Book Chapters

42 U.S.C. § 1981 should have solved a pervasive problem in American capitalism—when white economic interests do not converge with the contract rights of Black people, they are excluded from the market in a way that causes systemic harm. This Article proposes that the failure to enforce 1981 in the past may render it more harmful than beneficial in the present climate of retrenchment. The realities of racism combine with the lack of economic interest convergence to make combatting contract inequality on a contract-by-contract basis legally precarious, nearly impossible to properly evaluate, and difficult to economically incentivize. This is in …

Voluntary Legal Obligations: From Contract To Cohabitation, Gregory Klass

Georgetown Law Faculty Publications and Other Works

Although cohabitants often live together in ways indistinguishable from those who are married, the law treats them differently than it does spouses. In Toward a Private Law of Intimates’ Obligations, Emily Stolzenberg asks why, identifies the need for reform, and brings the law of cohabitation into conversation with recent work in private law theory. This Response builds on Stolzenberg’s excellent article to think more about the different types of obligations involved in contract, marriage and cohabitation. Although the moral and legal obligations attaching to these relationships are all voluntary, they exhibit different degrees of choice-dependence, and choice figures into …

Abuse Of Contract: A Proposal For A New Cause Of Action, Miriam A. Cherry

Faculty Publications

With the growth of online commerce and the platform economy, many companies are including provisions in their online terms and conditions that extend far beyond what reasonable consumers would expect. Some terms and conditions purport to bind customers to separate contracts in future transactions that have little to do with the first contract. Other boilerplate purports to cover family members of the customer who created an account. Some retailers have argued that people shopping in their brick-and-mortar stores are subject to terms and conditions because those shoppers had at some point previously created an online account. For example, Disney argued …

Does It Matter What People Lie About?, Stefanie Jung, Peter Krebs, Monika Leszczynska

Faculty Scholarship

We investigate whether people’s moral judgments of lies in pre-contractual negotiations differ from their views on whether such lies should give the deceived party a legal right to rescind the contract, and whether these judgments depend on the content of the lie. In a vignette study with 832 German students and 885 participants from Germany, Italy, and the United States, respondents evaluated a range of common negotiation lies. Across samples, participants were generally more likely to deem a lie immoral than to believe it should justify rescission, but the size of this gap varied depending on the lie’s subject. Lies …

Duality In Contract And Tort, Tim Friehe, Joshua C. Teitelbaum

Georgetown Law Faculty Publications and Other Works

We study situations in which a single investment serves the dual role of increasing the expected value of a contract (a reliance investment) and reducing the expected harm of a post-performance accident (a care investment). We show that failing to account for the duality of the investment leads to inefficient damages for breach of contract and inefficient standards for due care in tort. Conversely, we show that accounting for the duality yields contract damage measures and tort liability rules that provide correct incentives for efficient breach and reliance in contract and for efficient care in tort.