Contracts Commons^™

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 …

Nil And Contract Law: Advising A Prospective College Athlete Through Competing Name, Image, And Likeness Agreements, Jason Kight, Marcy Faircloth, Lori Mikl, Rachel Silverman

The COSMA Journal

Name, Image, and Likeness (NIL) agreements have created significant financial opportunities for amateur and collegiate athletes while also introducing complex legal, ethical, and strategic decision-making challenges. This decision-focused teaching case places students in the role of trusted advisors to Archie Stafford, a highly recruited high school athlete who must evaluate and compare multiple NIL contract offers connected to his preferred college options. By analyzing NIL agreements, students assess contract enforceability, identify key legal and business risks, weigh legal, contractual, ethical, and reputational disclosure obligations, and formulate a reasoned recommendation aligned with Archie’s academic, athletic, financial, and long-term career goals. The …

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 …

Contractualizing Corporate Governance, Jonathan C. Lipson, Eli Alexander Evans

University of Miami Law Review

The relationship between fiduciary duty and contract has never been clear. The law of fiduciaries has long constrained discretionary control of other people’s property, notably in corporate governance, where directors owe a corporation duties of care and loyalty. Yet, contract has also had the capacity to modify these duties in important—but uncertain—ways because neither body of law contains a meta-rule specifying which would “trump” in the event of conflict. Uncertainty was rarely problematic, however, because directors lacked the power to fully contract away their control of the corporation or their concomitant fiduciary duties.

This has changed in the past thirty …

Estoppel Without Regard To Equity? The Puzzling Omission Of Promissory Estoppel’S Inequity Condition In Canada, Marcus Moore

All Faculty Publications

Promissory estoppel plays an important role in enabling the enforcement of promises not made for consideration in cases where the promise was intended to and did induce a party to change its position in regard to preexisting legal rights. However, Canadian law on estoppel has been plagued by confusion and misunderstanding. This article addresses the internationally notable absence of an inequity requirement from promissory estoppel in Canada. The requirement’s absence is peculiar, in that estoppel’s very foundation is in equity, and it must assure that its effect is indeed equitable. Drawing on the Supreme Court of Canada’s decision in Trial …

The Autonomy Default Paradigm In Contract Law, Hanoch Dagan, Michael A. Heller

Faculty Scholarship

You can scribble an agreement on a napkin or hire lawyers to negotiate a hundred-page contract. Either way, most of your contractual obligations will not be in your document. They will be in the background rules contract law applies absent your express agreement. Justifying these defaults is a core task of contract theory; getting them right is a core task of contract law.

This Article introduces the autonomy default paradigm, a conceptually coherent and normatively attractive account of contract law defaults. We show that defaults are justified to the extent they enhance our autonomy, understood as self-determination. They vindicate our …

The Law On Deposits In Singapore, Tiong Min Yeo

Singapore Law Journal (Lexicon)

This article traces the development of the law of deposits in Singapore and reviews the restatement of the law in the 2024 landmark decision of the Court of Appeal in Li Jialin v Wingcrown Investments Pte Ltd, as well as some of the issues left open by the decision. It is argued that while the decision has clarified that deposits are not subject to the penalty rule but instead subject to the common law test of reasonableness—with the practical consequence that, with clear drafting, contracting parties can rely on the validity of reasonable deposit clauses without the complication of …

Existing Together From The Beginning: Freedom To Contract And Black Mutual Aid, Cara Mcclellan

Northwestern University Law Review

In a new wave of litigation, conservative legal organizations are attempting to rely on Reconstruction-era civil rights legislation to prevent nonprofits, charities, foundations, and other privately organized groups from engaging in race-conscious work. Unlike the Supreme Court’s recent rollback of affirmative action, which dealt with universities’ ability to consider race in admissions as state actors and as recipients of federal funding, a series of lawsuits now challenge the ability of private organizations to consider race in how they invest money and resources to create social impact. Adding fuel to the fire, on January 21, 2025, President Trump issued an Executive …

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

Law & Economics Working Papers

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. While 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 …

Abuse Of Contract: Boilerplate Erasure Of Consumer Counterparty Rights, Andrea Boyack

Faculty Publications

Contract law and the new Restatement of the Law of Consumer Contracts generally treats the entirety of a company’s boilerplate as presumptively binding. Entrusting the content of consumer contracts to companies creates a fertile legal habitat for abuse through boilerplate design.

There is no consensus on how widespread or severe abuse of contract is. Some consumer law scholars have warned of dangers inherent in granting companies unrestrained power to sneak waivers into their online terms, but others contend that market forces adequately constrain potential abuse. On the other hand, in the absence of adequate consumer knowledge and power, market competition …

Professors And Company Law: Implications For Academic Freedom, Salar Ghahramani J.D.

American University Journal of Gender, Social Policy & the Law

This Article examines the intersection of company law and academic freedom, specifically exploring how nonprofit universities might invoke corporate and agency law principles to assert breach of fiduciary duty claims when a university could view a professor’s handling of controversial topics or facilitation of provocative class discussions as detrimental to its financial interests or public reputation. Such allegations might arise when universities perceive that these discussions alienate donors, provoke public backlash, or otherwise harm the institution’s standing, thereby framing the professor’s academic choices as potentially disloyal or harmful to the university. While public university professors might argue that the First …

What Might Contract Theory Be?, Gregory Klass

Georgetown Law Faculty Publications and Other Works

Few contract theories begin with so comprehensive a discussion of method as does Stephen Smith’s book, Contract Theory. In the first chapter, “What Is Contract Theory,” Smith describes an interpretive approach guided by four goals: fit with the existing law, internal coherence, moral attractiveness, and transparency to legal actors.

This chapter in Understanding Private Law: Essays in Honour of Stephen A. Smith, does a deep dive into Smith’s description and defense of those goals. Smith pictures the contract theorist as an observer standing outside legal practice, interpreting the law but not participating in it. That picture results in …

Confirmation Notes In The English Common Law, Ilias Bantekas

Pace Law Review

Confirmation notes allow parties to a final or near-final contract to specify the terms of their agreement and thus render it binding. As a result, the note may take the form of an offer or acceptance or, if so specified by the parties, it may just as well serve as the contract. Where the note does not serve as a contract, the receiver is presumed to have accepted its terms if it has not rejected within reasonable time. A confirmation note that adds, modifies or limits the parties’ original (usually oral) agreement has no effect, unless the receiver unjustifiably delays …

Contract Law, Equality And The State, Orit Gan

Cleveland State Law Review

There is a rich and diverse literature on contract law and equality, discussing whether contract law should advance social equality and if so how should contract law achieve that. However, this literature has yet to address the State’s role in combating social inequality through contract law. Filling this void this Article discusses three strategies the State can and should adopt in promoting social equality, by enforcing contracts, applying contract law doctrines, and regulating and legislating laws as background rules. After mapping these three state powers the Article further explores three test cases: enforcing nonmarital agreements, applying contract defenses in consumer …

The Unbargained-For-Exchange In Copyright, Justin Ponds

MC Law Review

Copyright law in the United States is more than the letter "C" in a circle. The visual impression of someone clutching a book prevails in many minds. The use of the phrase "it's copyrighted" has become common. Many people consider a "copyright" to be "property." The true story of copyright law is so steeped in history - a great deal from England - that it makes even Betty White seem middle aged. This Article examines some of that history and compares mistaken connotations about "property" within the realm of contract law - a better association.

An Old Bottle For The New Wine: Understanding The Duty Of Honest Performance Under The Objective Theory, Humphrey Yuan Jheng

Dalhousie Law Journal

Bhasin v Hrynew has many dimensions and potentially affects almost every aspect of Anglo-Canadian contract law. This article is limited to one aspect only: the duty of honest performance (“DHP”). My article attempts to show that the objective theory can provide a solid foundation and a different thinking framework for understanding and developing the DHP. If I am right, the DHP may be placed on a sound footing, independently of the organizing principle of good faith. Section I of this article traces the duty’s development from Bhasin to Callow. Section II argues that under the objective theory, reasonable expectations of …

Cut The Baby Talk: Negotiating Pregnancy Clauses In Women's Athletic Contracts, Courtney Luis

Indiana Journal of Law and Social Equality

Many athletic departments, organizations, teams, and leagues have regulations that address the event of pregnancy in their athletes. As interest and participation in women’s sports continues to grow, along with the number and profitability of female athletes, pregnancy clauses are becoming increasingly common in athletic contracts for women.

Pregnancy clauses are an often overlooked section of athletic contracts and sports deals but can have far-reaching consequences for female athletes. Many athletic departments and organizations have attempted to create standardized regulations on how to deal with female athletes who become pregnant; however, these attempts are usually confusing, unclear, and regularly fail …

Teaching The Choice Between Vagueness And Precision In Contracts, Naveen Thomas

Transactions: The Tennessee Journal of Business Law

No abstract provided.

"Reverse Divisibility" And "Subsequent Modification": Expanding The Scope Of Justified Non-Performance In Multiple Contract Situations, Gregory S. Crespi

Faculty Journal Articles and Book Chapters

Parties to a contract sometimes invoke divisibility arguments in an attempt to recharacterize the contract as being two or more separate contracts. This is often done in order to limit the justified non-performance consequences of a breach of contract on their part. This short article considers the often-overlooked symmetrical possibility of a non-breaching party attempting to recharacterize two or more facially separate but closely related contracts as a single contract, expanding the scope of their justified non-performance rights after one contract is breached. I describe two complementary arguments justifying such a single-contract recharacterization of the relationship as the "reverse divisibility" …

An Introduction To Personal Growth Bets: Using Contract Law To Lose Weight And Quit Smoking, Max Raskin, Jack Millman

Notre Dame Journal on Emerging Technologies

Self-improvement is hard. Whether losing weight or quitting smoking, individuals have a difficult time honoring their commitments, especially if the only person they are disappointing is themselves. In this Article, we introduce a new legal mechanism for incentivizing personal growth. We describe this mechanism as a personal growth contract, which allows an individual to make an enforceable agreement with either a counterparty or himself with the aim of self-improvement. We propose the use of smart contracts to help execute unilateral personal growth contracts. Our conclusion is that personal growth contracts should be presumptively legal, provided they do not violate some …

A Contractual Approach To Choice Of Law Rules For Forum Selection Clauses, Shahar Avraham-Giller

Akron Law Review

A common practice in commercial agreements is to include a clause setting out where litigation will take place in case of a dispute between the contracting parties (a “forum selection clause”). The natural expectation of parties using such clauses is that in the event of litigation between them, this stipulation will be treated the same way as other contractual stipulations, including in the context of conflict of laws. According to the general principles of choice of law rules for contracts, the law of the contract should govern the validity and interpretation of forum selection clauses. In the case of a …

Brief Of Amicus Curiae Gregory Klass In Support Of Plaintiff-Appellee, Gregory Klass

Georgetown Law Faculty Publications and Other Works

This scholar’s amicus brief in the Fifth Circuit argues that tort remedies play an important role in the contract ecosystem, including promoting efficiency in exchanges; that a party who has been defrauded in the formation of a contract is not bound by contractual limitations on tort liability; and that worries about the tortification of contract law are overblown and out of date.

Perpetuities In An Unequal Age, Jack H.L. Whiteley

Northwestern University Law Review

For centuries, the common law limited aristocratic wealth. In the last three decades, that has changed. One by one, state legislatures have eliminated the rule against perpetuities (the Rule), and now “dynasty trusts” can make carefully controlled payments to a settlor’s descendants for hundreds of years. This change occurred soon before a large and ongoing intergenerational wealth transfer in the United States. Trusts scholars have roundly criticized the Rule’s removal, and some have described it as charting a path to a new Gilded Age.

This Article draws a theoretical lesson from the Rule’s demise. I argue that part of the …

Total Return Meltdown: The Case For Treating Total Return Swaps As Disguised Secured Transactions, Colin P. Marks

Faculty Articles

Archegos Capital Management, at its height, had $35 billion in assets. But in the spring of 2021, in part through its use of total return swaps, Archegos sparked a $30 billion dollar sell-off that left many of the world's largest banks footing the bill. Mitsubishi UFJ Group estimated a loss of $300 million; UBS, Switzerland's biggest bank, lost $861 million; Morgan Stanley lost $911 million; Japan's Nomura lost $2.85 billion; but the biggest hit came to Credit Suisse Group AG, which lost $5.5 billion. Archegos itself lost $20 billion over two days. The unique characteristics of total return swaps and …

How Reputational Nondisclosure Agreements Fails (Or, In Praise Of Breach), Mark Fenster

UF Law Faculty Publications

Investigative reporters and the #MeToo movement exposed the widespread use of nondisclosure agreements intended to maintain confidentiality about one or both contracting parties’ embarrassing acts. These reputational NDAs (RNDAs) have been widely condemned and addressed in the past half-decade by legislators, activists, and academics. Their exposure, often via victims’ breaches, revealed a curious and distinct dilemma for the non-breaching party whose reputation is vulnerable to disclosure. In most contracts, non-breaching parties might choose to forgo enforcement because of the cost and uncertain success of litigation and the availability of other pathways to a satisfactory resolution. Parties to a RNDA, by …

Deconstructing Employment Contract Law, Rachel Arnow-Richman, J.H. Verkerke

UF Law Faculty Publications

Employment contract law is an antiquated, ill-fitting, incoherent mess. But no one seems inclined to fix this problem. Employment law scholars, skeptical of employees’ ability to bargain, tend to disregard contract law and advocate for just-cause and other legislative reforms to eliminate at-will employment. And contracts scholars largely ignore employment cases—viewing them, with some justification, as part of a peculiar, specialized body of law wholly divorced from general contract jurisprudence. As a result of this undesirable employment law exceptionalism, courts lack the tools needed to resolve recurring disputes.

This Article offers a new, comprehensive historical account that exposes the formalistic …

Contract Production In M&A Markets, Stephen J. Choi, Mitu Gulati, Matthew Jennejohn, Robert E. Scott

Faculty Scholarship

Contract scholarship has devoted considerable attention to how contract terms are designed to incentivize parties to fulfill their obligations. Less attention has been paid to the production of contracts and the tradeoffs between using boilerplate terms and designing bespoke provisions. In thick markets everyone uses the standard form despite the known drawbacks of boilerplate. But in thinner markets, such as the private deal M&A world, parties trade off costs and benefits of using standard provisions and customizing clauses. This Article reports on a case study of contract production in the M&A markets. We find evidence of an informal information network …

Time’S Up: Against Shortening Statutes Of Limitation By Employment Contract, Meredith R. Miller

Scholarly Works

Employers are increasingly adding clauses to contracts with employees that purport to shorten the statutes of limitation for employees to pursue claims against their employers (“SOL Clauses”). SOL Clauses are being imposed on employees in various stages of the contracting process. They have turned up in job applications, offer letters, arbitration clauses, employment agreements and employee handbooks. Where they have been enforced by the courts, the justification has been a prioritization of “freedom of contract” over any other policy concerns. This Article argues that, in the employment context, “freedom of contract” should not be prioritized over other competing concerns, which …

Impossibility And Frustration, Jennifer Nadler

All Papers

No abstract provided.

The Inconsistencies Of Consent, Chunlin Leonhard

Catholic University Law Review

U.S. legal scholars have devoted a lot of attention to the role that consent has played in laws and judicial consent jurisprudence. This essay contributes to the discussion on consent by examining judicial approaches to determining the existence of consent in three selected areas--contracts, tort claims involving medical treatment, and criminal cases involving admissibility of confessions, from the late nineteenth century until the present. This article examines how courts have approached the basic factual question of finding consent and how judicial approaches in those areas have evolved over time. The review shows that the late 19th century saw courts adopting …