Contracts Commons^™

Context Matters - What Lawyers About Choice Of Law In Merger Agreements, Juliet P. Kostritsky

Faculty Publications

Finding out the truth about a matter can proceed in many different ways. Neoclassical law and economists would construct models built on certain assumptions. The empiricists and contextualists would collect data about the matter in the inductive not deductive sense.

The choice of law in merger agreements presents an opportunity to study a contractual provision in the context of merger deals to see what we can learn from studying the choices in detail.

There are a variety of ways to approach these provisions in merger agreements. Can we learn anything about how choices are made in the drafting of these …

Dispute Resolution Clauses In International Sponsored Research Contracts, Dennis Lazarev

Cardozo Journal of Conflict Resolution

Pharmaceutical companies are the greatest non-governmental sponsors of biomedical research in academia. Increasingly they sponsor foreign entities, typically universities or non-commercial research institutions. Another type of cross-border sponsorship occurs when two research institutions engage in a collaborative research effort. In either case disputes may arise. The most common types of disputes are the rights to the intellectual property developed in the course of sponsored research, and the scope of research activities that an agreement covers. Parties to these cross-border sponsorship arrangements have rarely incorporated dispute resolution clause in their contracts. This Article will argue that arbitrationis an approach far superior …

Permanent Sovereignty Over Natural Resources And The Sanctity Of Contracts, From The Angle Of Lucrum Cessans, Sangwani Patrick Ng'ambi

Loyola University Chicago International Law Review

No abstract provided.

Enhancing The Socially Instrumental Role Of Insurance: The Opportunity And Challenge Presented By The Ali Restatement Position On Breach Of The Duty To Defend, Jeffrey W. Stempel

Scholarly Works

The American Law Institute (ALI), in its current draft of the Restatement of the Law of Liability Insurance , has adopted the position that a liability insurer in breach of its duty to defend, but not acting in bad faith, forfeits the right to dispute coverage of the resulting judgment or reasonable, noncollusive settlement in a lawsuit. The ALI view is the minority rule in the courts in that most make bad faith a prerequisite for loss of a coverage defense but presumably will spur re-examination of the issue in many states. Unsurprisingly, insurers have opposed the ALI position with …

Contract Law And Fundamental Legal Conceptions: An Application Of Hohfeldian Terminology To Contract Doctrine, Daniel P. O'Gorman

Faculty Scholarship

No abstract provided.

Is There A "Duty To Read"?, Charles L. Knapp

Faculty Scholarship

The notion that there is in general contract law a "duty to read" persists in the decisions of American courts. This Article explores the general question of what it may mean to say that there is a "duty to read," and concludes by suggesting what role (if any) that doctrine should play in our present-day law of contract. The Article begins by examining various ways in which the "duty to read" is commonly articulated, and compares it to other contract law concepts: the "duty to bargain in good faith" and the "duty to mitigate damages." The Article next considers a …

Frictions And The Persistence Of Inferior Contract Terms, Royce De R. Barondes

Faculty Publications

A rudimentary conceptualization of the development of ancillary contract terms would assert competition will result in terms that are joint-wealth-maximizing for merchants and customers. Building on developments in modeling frictions in markets, this article presents simple models of frictions in multi-period contracting as to ancillary contract terms. The modeling illustrates that, for plausible parameter estimates of frictions, combinations of switching costs and investigation costs may allow collectively inferior contract terms to persist in consumer transactions. The results are in harmony with recent evidence illustrating the infrequency with which consumers actually read contract terms. The modeling identifies circumstances where this opportunistic …

Delaware’S Implied Contractual Covenant Of Good Faith And “Sibling Rivalry” Among Equity Holders, Daniel S. Kleinberger

Faculty Scholarship

An obligation of good faith and fair dealing is implied in every common law contract and is codified in the Uniform Commercial Code (“U.C.C”). The terminology differs: Some jurisdictions refer to an “implied covenant;” others to an “implied contractual obligation;” still others to an “implied duty.” But whatever the label, the concept is understood by the vast majority of U.S. lawyers as a matter of commercial rather than entity law. And, to the vast majority of corporate lawyers, “good faith” does not mean contract law but rather conjures up an important aspect of a corporate director’s duty of loyalty.

Nonetheless, …

Defects In Consent And Dividing The Benefit Of The Bargain: Recent Developments, Jeffrey L. Harrison

UF Law Faculty Publications

Contract law professors and students, attorneys, judges know that discussions about consent are rarely about consent. This results from three factors. First, it is the appearance of consent that is necessary to form a contract. Second, not every manifestation of consent is sufficient to create a contract that cannot be avoided. Third, interpretations of consent have the potential to allow courts to intervene when the benefit of the bargain is seen to be unfairly divided or one of the parties is actually worse off as a result of the contract. This Article assesses the extent to which recent decisions about …

Contract Resurrected! Contract Formation: Common Law – Ucc – Cisg, Sarah Howard Jenkins

Law Faculty Scholarship

No abstract provided.

Legislating Labors Of Love: Revisiting Commercial Surrogacy In New York, Deborah Machalow

Indiana Law Journal

After over twenty years of status quo, the New York Legislature has an opportunity to liberalize its surrogacy laws whether during this legislative session or the next. By adopting the proposals with the suggested changes, the Legislature would simultaneously bring the law into conformity with the desires of many New Yorkers and recognize important technological developments. The proposals are marked improvements on the present prohibitory regime; however, they are not perfect. The legislature should consider further protections for the parties to surrogacy arrangements and amend the proposals accordingly. The legislature’s renewed interest in the topic is refreshing; this interest should …

Postdefault Interest Rates In Bankruptcy, David G. Carlson

Articles

This Article shows that as Bankruptcy Code section 506(b) is currently written, postdefault interest rates are prohibited when the default is an “ipso facto event” — a filing for bankruptcy or insolvency as the event of a default. Yet some courts have insisted on postdefault interest in situations reinstating a loan agreement and have been ignoring restrictions on pendency interest to permit oversecured creditors from obtaining penalty rates of interest. This Article argues that those holdings violate section 506(b) and Supreme Court precedent. It begins with an analysis of ipso facto defaults, showing that the Bankruptcy Code prohibits ipso facto …

Contract Review: Cognitive Bias, Moral Hazard, And Situational Pressure, Eric A. Zacks

Law Faculty Research Publications

This Article explores the contract drafting and review process of attorneys from a cognitive and social science perspective. Based on an understanding of the behavioral tendencies of individual attorneys as impacted by cognitive bias, moral hazard, and situational pressure, the drafting attorney may be able to secure particular transactional advantages for her client. For example, the anchoring effect, which suggests that individuals are affected by the presence by an initial value position, may explain why drafters should and do include extreme positions in their initial draft. Similarly, time pressure may affect an attorney's review of a contract, which a drafting …

Breaking “Too Darn Bad”: Restoring The Balance Between Freedom Of Contract And Consumer Protection, Stephanie Drotar

NYLS Law Review

No abstract provided.

Principles Of Contract Law Applied To Entertainment And Sports Contracts: A Model For Balancing The Rights Of The Industry With Protecting The Interests Of Minors, John H. Shannon, Richard J. Hunter Jr.

Loyola of Los Angeles Law Review

This Article discusses the context of common law and statutory materials dealing with minors who participate in the entertainment and sports fields. The Article describes the changes undertaken as a result of several notorious cases involving prominent child actors, and how the California legislature dealt with issues ranging from set asides of income, approval of contracts by a competent court of jurisdiction, recognition of the legitimate interests of all parties to the contract, to principles under which a minor would be precluded from disaffirming a contract. The Article then applies and extends the principles developed in entertainment contracts to minors …

The Role Of The Profit Imperative In Risk Management, Christopher French

Faculty Scholarship

Risks in the world abound. Every day there is a chance that each of us could be in a car accident. Or, one of us could be the victim of a tornado, flood or earthquake. Every day someone becomes deathly ill from an insidious disease. Our properties are in constant peril—one’s house could catch fire at any time or a tree could fall on it during a storm. Any one of these events could have devastating financial consequences, and they are just a few of the many risks that impact our daily lives. One of the principal ways we manage …

Implementing Symmetric Treatment Of Financial Contracts In Bankruptcy And Bank Resolution, E. J. Janger, John A.E. Pottow

Articles

Financial contracts come in many forms and serve many functions in both the financial system and the broader economy. Repos secured by U.S. Treasury securities act as money substitutes and can play an important role as part of the money supply, while similarly structured repos, secured by more volatile collateral, may be used as speculative devices or hedges. Swaps can be used to insure against various types of market risk, from interest rates to oil prices, or they can operate as vehicles for highly leveraged investments. The parties to these instruments are sometimes major financial institutions and, other times, ordinary …

California Bank & Trust V. Lawlor: A More Certain Future For California's Sham Guarantee Defense, Brett D. Young

Loyola of Los Angeles Law Review

No abstract provided.

Postemployment Noncompete Agreements: Why Utah Should Depart From The Majority, Christopher Mack

Utah Law Review

A decision by the Utah Legislature to follow California’s statutory scheme on noncompetition law would have a positive impact on the economy. A ban on all postemployment noncompete agreements would strengthen the economy by increasing innovation and healthy competition. Additionally, it would create a more fair and efficient labor market, allowing individuals to reach their employment potential. Finally, abolishing postemployment noncompete agreements would significantly increase the protection to employee rights without harming businesses’ rights to protect its goodwill and trade secrets.

J.K.C. V. T.W.C., Richard Pearsall

NYLS Law Review

No abstract provided.