Contracts Commons^™

Agency Problems In Contract Design, Naveen Thomas

Loyola of Los Angeles Law Review

In the stylized world of contract theory, contracting parties write optimal agreements that maximize their collective utility by balancing front-end and back-end costs and benefits. In the real world of business deals, however, drafters rarely even approximate this ideal of economic efficiency, let alone achieve it. Scholars have long recognized this gap between theory and practice, and the most common explanation is a classic principal–agent problem in which the lawyers who draft agreements do not act in the contracting parties’ best interests. Despite this explanation’s prevalence, most literature has simply noted this issue in passing as an obvious truth, and …

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 …

The Bankruptcy Code's Missing Link: How The Undefined "Executory Contract" Quandary Is Leaving Land Sales And Bankruptcy Courts In Limbo, Abby Ponder

Northern Illinois University Law Review

Arguably the most convoluted concept lurking within bankruptcy law is that of the "executory contract" which may be found within section 365 of the bankruptcy code. Since its inception in 1978, this section has been dubbed one of the most "psychedelic" areas of American jurisprudence. The phantasmagoric nature of this section largely derives from Congress declining to provide a definition within the Code for executory contracts. Already rife with confusion and contradiction, the missing definition of executory contract, which comes under section 365, represents a significant "missing link" of understanding for bankruptcy courts in ruling on land sale contracts. Bankruptcy …

إيفاء الديون المحررة بالعملة الأجنبية في العقود الداخلية, نجيب الحاج شاهين

Proche-Orient, Études juridiques

The issue of the payment of debts denominated in a foreign currency arises in two types of contracts: international contracts and domestic contracts. In international contracts, this issue is easily resolved by Lebanese Courts who have consistently ruled that the debtor must repay the debt arising from an international contract in the foreign currency that is stipulated in that contract. On the other hand, this raises three problems that have led to conflicting court decisions in domestic contracts. These issues are the following: the validity of contractual provisions requiring that payment be made in a foreign currency; whether the debtor …

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 …

The Arbitration Web Ensnaring Every Consumer: The Next Evolution In Corporate Strategy To Compel Arbitration, Michael Conklin

Maine Law Review

This first-of-its-kind Article uses a novel hypothetical to explore the expanding role of compelled arbitration. The hypothetical involves numerous large corporations agreeing to cross-reference each other in their arbitration agreements, thus attempting to create a massive arbitration web ensnaring nearly every American and allowing corporations to compel arbitration against parties with whom they never interacted. This Article presents the case that courts might enforce such a scheme based on the judicial trend toward ever-expanding compelled arbitration jurisprudence, the docket-clearing incentives faced by judges, existing case law allowing some non-signatories to enforce arbitration agreements, the strong assumption in favor of arbitration, …

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.

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

William & Mary Law Review Online

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 …

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 …

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 …

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 …

Contract Law And The U.S. Legal System, Business Law Assignment, Lorelei Salas

Open Educational Resources

This assignment ties legal concepts covered in business law to specific scenarios that can measure comprehension of contracts and the US legal system

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 …

Incorporating Ai Into The Contract Drafting Process: A Classroom Exercise, Kristen V. Hardy

UF Law Faculty Publications

I recently read the Three Blind Drafts: An AI-Generated Classroom Exercise, by Margie Alsbrook and Ashley Chase. I was trying to create an AI-related assignment for my spring contract drafting class. The article inspired me to attempt a conceptually similar assignment in an AI contract drafting exercise. This article will summarize Alsbrook’s and Chase’s original idea and describe how I adapted it for the contract drafting classroom; the student outcome; and my thoughts about what I would do differently the next time I attempt the assignment.

Defending Form Contract Consent, Wayne R. Barnes

Faculty Scholarship

The issue of standard form contracts has bedeviled Contracts scholars for a century. The basic problem has long been known. Contract is supposed to be a quintessentially consensual activity, whereby both parties are operating with full knowledge and comprehension of the array of terms and conditions being negotiated and agreed to. But by employing standard forms replete with boilerplate fine print, companies have created a regime whereby it is most likely irrational for consumers to bother reading the terms before consenting to the transaction. The existing “duty to read” doctrine is that consumers fully consent to all terms when they …

Better Digital Contracts With Prosocial Friction-In-Design, Brett Frischmann, Moshe Y. Vardi

Faculty Publications

Contract law is supposed to enable people to reach genuine agreements and cooperate. If this ideal was ever a reality, the rise of mass market contracts and boil­erplate rendered it pure fiction. Modern consumer contracts are incomprehensible to most people. No one reads them anyway.

Digital contracting involves design features that amplify traditional boilerplate harms and create others. For example, digital contracting is too cheap; low marginal costs lead to overexpansion in scale and scope. To make matters worse, the loss of autonomy from repeat engagement with digital contracting systems is pernicious. People become increasingly predictable and programmable as digital …

A Noncompete By Any Other Name: Assessing The Validity Of Training Repayment Agreements Under Washington Law, Hannah Lukomski

Washington Law Review

Training Repayment Agreements (TRAs) are restrictive employment covenants that require an employee to pay their employer a fixed or prorated sum for training costs if the employee quits their job within some period defined by the agreement. The prevalence of TRAs has drastically increased in low-wage employment. TRAs harm employees by imposing an artificial financial constraint that disincentivizes employees from leaving their employer within the contract duration. The Washington State Legislature has not directly addressed TRAs despite having articulated limits on other restrictive employment covenants, like noncompetition agreements. This Comment reviews federal agency actions and other states’ approaches in response …

The Form Doesn’T Know Anything: A Response To Chowdhury, Chudkowski & Gulati, Glenn D. West

University of Miami Law Review

Merger and acquisition agreements differ significantly from sovereign bonds. While I have criticized the stubborn persistence of harmful or ineffective boilerplate in the M&A deal world, this persistence does not stem from a desire for uniformity or blind adherence to a sacred form. The dynamics involved in negotiating merger and acquisition agreements often dictate that comments on a form agreement be kept to a minimum, making the improvement of the form a secondary goal. Moreover, what one party considers bad boilerplate may be seen as beneficial by another. Many of the myths supposedly debunked by Chowdhury, Chudkowski & Gulati may, …

Statutory Contracts, Jeff Gordon

Vanderbilt Law School Faculty Publications

Private law offers a unique solution to the problem of long-term fiscal commitment. When Congress enacts a spending program that will take many years to reach fruition, there is a risk of a subsequent Congress or President cutting off funding in the interim. There is no escape from the problem within appropriations law itself One solution, however, is to entrust private sector allies as vessels of long-term commitment. As a matter of political economy, that solution draws on policy-feedback theory. As a matter of law, the solution rests on a mechanism that Congress already uses but has not recognized its …

Racial Discrimination In Retailers' Willingness To Accept Returns: A Field Study, Meirav Furth-Matzkin

Northwestern University Law Review

Black Americans have long faced discriminatory treatment while shopping in retail establishments, including, most notably, being subjected to increased surveillance, inconsistent pricing, and inferior customer service. Little attention, however, has been paid to other post-purchase aspects of retail transactions. Specifically, do Black Americans receive the same treatment as white customers when it comes to performing sellers’ formal policies or contracts? While it is understood that salespeople are often given discretion to deviate from standard form contracts, sometimes departing from the literal terms to satisfy consumers, there has been a notable absence of systematic exploration into how salespeople exercise this authority …

Changemakers: Sarah Jane Pruell L'25 : 3l : All The Right Reasons 2-10-2025, Suzi Morales, Roger Williams University School Of Law

Life of the Law School (1993- )

No abstract provided.

Law School News: All The Right Reasons 2-10-2025, Suzi Morales

Life of the Law School (1993- )

No abstract provided.

Strategically Restated Defaults, Wendy Gerwick Couture

William & Mary Business Law Review

Business and commercial statutes are composed almost entirely of default rules, which parties may override via agreement or adopt via silence. Drafters of these statutes, and theories about the substance of default rules, assume that parties indeed adopt statutory default rules via silence.

Against this backdrop, this Article examines unexpected behavior by parties to business and commercial agreements: parties often restate statutory default rules in their agreements rather than adopting those rules via silence. Based on a review of actual limited partnership agreements and security agreements, this Article identifies five unique species of restatement—bald, tweak, refill, baseline, and context restatements—and …

Discriminating Alignment In The Innovation Sphere, Juliet P. Kostritsky

Faculty Publications

Contracts play an important role in innovation. As a result, some. scholars have proposed theories highlighting contract provisions as devices that can serve to informally enforce agreements and build trust between parties. Others emphasize the hierarchical provisions between firms to promote efficiency. Yet another group views these agreements as a mechanism to institutionalize learning and protect property interests. This Article offers a new theory. To understand a firm’s contractual choices and governance, we must look at how the same provisions in different contracts may have distinct meanings or operate differently in different contexts. So, scholars must give context to these …

Drafting In The Digital Age: Contract-Design And Web-Based Consumer Contracts, Ben Fernandez

UF Law Faculty Publications

Consumers often do not read the contracts they sign. They know the basic terms of the deal and take the risk that it is enough to avoid being sued for breach. Even sophisticated businesspeople often do not read the documents they sign; they rely on their attorneys to tell them what they need to know. If the sole purpose of documenting a contract is to protect the party that has the financial resources and the leverage to hire an attorney to draft it, then the attorney doesn’t do their client a disservice by focusing solely on the contract’s enforceability. A …

Power Struggle: The Disproportionate Burden State Surrogacy Requirements Impose Upon Women, Courtney Harper Turkington

William & Mary Journal of Race, Gender, and Social Justice

The use of gestational surrogacy as a means to grow a family is increasing each year as fertility rates decline and single individuals and same-sex couples seek to have children who are genetically related to them. The United States does not have a uniform law governing surrogacy, leaving states to enact their own. While twenty-four states in this country have passed legislation permitting surrogacy and twenty-four others allow surrogacy in practice, the vast majority of states impose laws or practices that unduly burden women. In particular, Louisiana has the most restrictive surrogacy regime in the country. The state’s gestational carrier …

Learning From Mistakes: A Quantitative Comparative Study Of Court Decisions Involving The Excuse Of Contractual Mistake, Brian Mccall

Faculty Articles

In almost two decades of teaching Contracts law to first year law students, I have found one of the hardest doctrines to teach to be the excuse of mistake, both mutual and unilateral Students typically express the frustration that they cannot articulate a clear standard to determine when a party’s claim of an excusing mistake will succeed or fail. This frustration with the doctrine seems to be thousands of years old. After years of struggling to teach this topic, I resolved to dig deeper into the caselaw to see if any trends could be observed that would help dispel some …

Secondary-Default Remedies: Should Harshness Limit Enforcement?, Steven L. Schwarcz

Faculty Scholarship

This Article examines a critical but largely unexplored issue in contract law: whether secondary defaults—that is, relatively minor or technical defaults not involving debt repayment— should justify enforcing severe contractual remedies. In the context of lending, this issue concerns whether those types of defaults should justify terminating financing commitments, accelerating the maturity of outstanding debt, and foreclosing on collateral, any of which can cause a firm’s failure. Although this issue arises constantly and its resolution can be critical to a firm’s survival, judges and lawyers lack clear answers. This Article analyzes and seeks to provide answers both under existing law …

Boucher V. Maine Employment Security Commission: The Role Of Acceptance In Employment Security Law, Bradley M. Lown

Maine Law Review

The Maine Employment Security Law was enacted in an attempt to limit the serious social consequences of unemployment and to insure individual workers against the distress of involuntary unemployment. Under the law, employees who leave work voluntarily without "good cause" are ineligible for unemployment compensation benefits. Until recently the Maine Supreme Judicial Court had not determined whether a substantial reduction in wages by an employer would constitute good cause to leave work under the "voluntary quit" provision of the law. In Boucher v. Maine Employment Security Commission, however, the Maine Supreme Judicial Court, sitting as the Law Court, determined that …

Discrimination In Contractual Performance: Theory, Evidence, And Preliminary Policy Prescriptions, Meirav Furth-Matzkin

Washington Law Review

This Article examines the often-overlooked practice of “selective performance” of standard form consumer contracts—where sellers permit employees to exercise discretion by waiving or modifying contractual terms to maintain customer satisfaction. While such flexibility can benefit consumers, it raises serious concerns about discrimination. Through both theoretical analysis and empirical evidence, this Article demonstrates that discretionary performance can disproportionately favor certain consumer groups, particularly along racial and gender lines, leading to biased and inequitable outcomes. Drawing on examples from diverse sectors, including retail, insurance, and mortgage services, the Article highlights how marginalized communities, especially Black consumers, frequently face harsher treatment and greater …