Contracts Commons^™

The Moral Hazard Of Contract Drafting, Eric A. Zacks

Florida State University Law Review

This Article identifies and examines the principal-agent problem as it arises in the context of contract preparation. The economic agency relationship, as it may be understood to exist for contract drafting, provides a superior framework for understanding and reforming the inability of the non-drafting party (the principal) to control the drafting party (the agent). As an economic agent, the drafting party faces a moral hazard when preparing the contract because of the differing interests of the parties as well as the information and control asymmetries that exists. For example, the use of standard form contracts in consumer transactions is an …

Why The State Cannot “Abolish Marriage”: A Partial Defense Of Legal Marriage, Gregg P. Strauss

Indiana Law Journal

Does a liberal state have a legitimate interest in defining the terms of intimate relationships? Recently, several scholars have answered this question with a no and concluded that the state should abolish marriage, along with all other categories of intimate status. While politically infeasible, these proposals offer a powerful thought experiment. In this Article, I use this thought experiment to argue that the law cannot avoid relying on intimate-status norms and has legitimate reasons to retain an intimate status like marriage.

The argument has three parts. The primary lesson of the thought experiment is that the state cannot abolish intimate …

The Moral Hazard Of Contract Drafting, Eric A. Zacks

Law Faculty Research Publications

This Article identifies and examines the principal-agent problem as it arises in the context of contract preparation. The economic agency relationship, as it may be understood to exist for contract drafting, provides a superior framework for understanding and reforming the inability of the non-drafting party (the principal) to control the drafting party (the agent). As an economic agent, the drafting party faces a moral hazard when preparing the contract because of the differing interests of the parties as well as the information and control asymmetries that exists. For example, the use of standard form contracts in consumer transactions is an …

Good-Cause Statutes Revisited: An Empirical Assessment, Adi Ayal, Uri Benoliel

Indiana Law Journal

One of the most vital debates in franchise law focuses on whether state or federal law should adopt “good-cause statutes” (GCSs), which require franchisors to show good cause before terminating contractual relations with a franchisee. The traditional law-and-economics analysis suggests that GCSs are inefficient. This inefficiency argument is based upon one central hypothesis: GCSs increase franchisee free riding since they limit the franchisor’s ability to terminate the franchise contract easily. The free-riding hypothesis has been significantly influential in the development of franchise law, as is evident in state and federal statutory regimes. To date, the majority of states and the …

Contract Law [2014], Yihan Goh, Pey Woan Lee, Chee Ho Tham

Research Collection Yong Pung How School Of Law

No abstract provided.

Be Careful What You Do Not Ask For: Contracts With The Federal Government For Which Purely Nonmonetary Relief Exists In The Event Of Breach Must Provide For Monetary Damages To Make Them Available To Non-Breaching Private Parties, Matthew W. Cecil

Journal of Dispute Resolution

By further limiting access to one of the only forums in which private parties may seek monetary damages over $10,000 from the federal government, the United States Federal Circuit Court of Appeals in Higbie v. United States1 has ensured non-breaching private parties will not be wholly compensated for their injuries and has undermined the court’s own interest in bolstering mediation.

Contractual Choice Of Law In Contracts Of Adhesion And Party Autonomy, Mo Zhang

Akron Law Review

The article attempts to argue that contracts of adhesion do not conform to the notion of autonomy that underlies the choice of law by the parties and is incompatible with the principle of mutuality on which the power of the parties to make the choice of applicable law rests. The main theme of the article is to suggest that the choice of law clause in contracts of adhesion shall not take effect (although the clause may not necessarily be invalid), unless and until the other party (adherent) meaningfully agrees or a court scrutinizes the contract for the true assent of …

Raser Technologies, Inc. Et Al., Order On Defendants' Motion For Entry Of Final Judgment Under O.C.G.A. 9-11-54(B), John Goger

Superior Court of Fulton County: Metro Atlanta Business Case Division Opinions

No abstract provided.

Disappearing Ink: The Emerging Duty To Remove Invalid Policy Provisions, Robert L. Tucker

Akron Law Review

This list includes only these decisions of the state’s court of last resort. It does not even begin to touch upon the provisions invalidated by decisions of inferior trial courts and intermediate courts of appeal which, for one reason or another, never reached the Supreme Court. And those intermediate appellate courts, it should be noted, have not limited themselves to invalidating provisions that are contrary to state statutes. In at least one case, a court of appeals held that an “other owned auto” exclusion in an uninsured motorist endorsement was invalid and unenforceable, even though the provision was expressly permitted …

Summary Of Excellence Cmty. Mgmt. V. Gilmore, 131 Nev. Adv. Op. 38 (June 25, 2015), Ashleigh Wise

Nevada Supreme Court Summaries

The Court held the sale of a 100 percent membership interest in a limited liability company does not affect the enforcement of an employee’s employment contract containing a restrictive covenant because the sale does not create a new entity. An employer limited liability company may enforce a restrictive covenant in an employment contract without its employee’s consent of assignment.

Restrictive Covenants In Illinois: Adequate Consideration Problems Show That The Common Law Is An Inadequate Solution, David S. Repking

Chicago-Kent Law Review

Illinois courts have long dealt with whether restrictive covenants, specifically non-compete clauses, can and should be enforced when they involve employees of businesses. Many aspects of restrictive covenants have been litigated, but a recent Illinois Appellate Court case analyzed the issue of what is adequate consideration in order to enforce a restrictive covenant against a former employee. The First District in Fifield v. Premier Dealer Services, Inc., affirmed a bright-line, two-year rule for deciding how long an employee must work for an employer before a re-strictive covenant can be enforced.

The two-year rule protects employees because an employer cannot …

A Trustee’S Fiduciary Duties At The Start And End Of Administration, Robert Whitman

Catholic University Law Review

Prior to the creation of a trust and at its termination, a trustee’s fiduciary duties are often ambiguous. It is argued that, where fiduciary duties do not exist, contract law may be found to govern the rights of the settlor, the trustee, and the beneficiaries. This article refutes this argument because under the principles of modern contract law, certain conduct may be permitted that would not be acceptable if fiduciary duties existed more clearly. The most common problems arise in three areas: (1) the seeking of a receipt and release by a corporate fiduciary upon an informal termination of a …

James A. Pritchard Iii, Order And Judgment On Plaintiff's Motion For Partial Summary Judgment As To Defendant Morris, Schneider, Wittstadt, Llc, Melvin K. Westmoreland

Superior Court of Fulton County: Metro Atlanta Business Case Division Opinions

No abstract provided.

Global Aerospace Inc., Order On Defendants' Fourth Motion For Order Compelling Discovery Against Plaintiff Global Aerospace Inc., Elizabeth E. Long

Superior Court of Fulton County: Metro Atlanta Business Case Division Opinions

No abstract provided.

John W. Robinson Iii, Protective Order, John Goger

Superior Court of Fulton County: Metro Atlanta Business Case Division Opinions

No abstract provided.

Payday Lenders, Vehicle Title Loans, And Small-Value Financing: The Cfpb's Proposal To Regulate The Fringe Economy, Christopher K. Odinet

Faculty Scholarship

The market for payday lenders, businesses that provide vehicle title loans, and other small-value financing players is rife with controversy. Some see them as predatory lenders that weave a web of never-ending debt designed to capture the weakest and most economically vulnerable of society. However, advocates of these financial institutions argue that for many Americans who are otherwise shut out of the conventional lending market, these players provide the only viable source of credit in times of economic hardship. Whatever the view, these businesses, their borrowers, and the credit markets that they together comprise are often referred to in legal …

Natural Resource Contracts As A Tool For Managing The Mining Sector, David Kienzler, Perrine Toledano, Sophie Thomashausen, Sam Szoke-Burke

Columbia Center on Sustainable Investment Staff Publications

In this report commissioned by the Bundesanstalt für Geowissenschaften und Rohstoffe (BGR) on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), CCSI examined the different types of legal regimes governing mining projects in 18 countries to gain a better understanding of mining deals granted and negotiated under different minerals regimes. CCSI compared the provisions of 30 mining contracts from 13 countries, analyzed a selection of mining-related legislative texts from 18 countries, and surveyed the experiences of mining contract negotiations through dozens of interviews with experts, government officials, company representatives, and members of civil society organizations.

The report …

The Green To Blue Pipeline: Defense Contractors And The Police Industrial Complex, Karena Rahall

Cardozo Law Review

Images of police in tactical gear, pointing automatic weapons at unarmed demonstrators in Ferguson, Missouri, represented a flashpoint in public awareness that American police are rapidly militarizing. Federal grants have been quietly arming police with tanks, drones, and uniforms more suited to waging war than patrolling the streets. As police have acquired more military gear, Special Weapons and Tactics teams and deployments have proliferated. Even small towns receive surplus military materiel to fight the "wars" on drugs and terrorism. In addition, police training uses a military approach that threatens to transform the traditional police mandate of protecting and serving into …

Drummond Financial Services Llc, Interlocutory Injunction Order, John Goger

Superior Court of Fulton County: Metro Atlanta Business Case Division Opinions

No abstract provided.

European Economic Communities - European Court Of Justice - Convention On Jurisdiction And The Enforcement Of Judgments In Civil And Commercial Matters - Court Independently Defines Phrase "Sale On Installment Credit Terms" To Limit Jurisdictional Advantage To Private Final Consumers, Elizabeth Grant Kline

Georgia Journal of International & Comparative Law

No abstract provided.