Contracts Commons^™

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 …

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 …

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 …

Some Respect Reserved? Survey Experiment Insights On The Perception Of Creative Commons And Copyright Infringement, Thomas H. Rousse

Cardozo Arts & Entertainment Law Journal

Since its inception, Creative Commons has introduced new ways for creators to grant licenses to the public without cost or the need for negotiation by breaking up rights provided by copyright and making a subset of those rights available to anyone willing to abide by the conditions of the license. Its widespread adoption has democratized open licensing for creators beyond the software context these licenses originated within. Although the success of Creative Commons as a community is plain, relatively little information is available about its perception by the general public. Aggressive litigation by Creative Commons licensors has put the organization …

Contracting For Innovation In The Global South: Empirical Evidence From Brazil, Pablo Marcello Baquero

FIU Law Review

As innovation cycles accelerate, companies seeking to remain at the forefront of the knowledge economy increasingly partner with sophisticated firms to co-create innovation. These collaborations involving pervasive uncertainty are structured through hybrid contractual arrangements that combine features of market-based independence with those of the close coordination typical of the firm. To date, contracting for innovation has been examined primarily in the context of the Global North. In the United States, the literature has focused on the governance mechanisms that parties employ to continuously define their obligations and mitigate opportunism amid profound uncertainty. In Europe, scholarship on contractual networks or organizational …

The Italian Rice Production: Between Tradition And Globalization, Bianca Gardella Tedeschi

FIU Law Review

The Article examines the Italian rice sector as a case study in how law mediates the tensions between territorial agricultural traditions and the pressures of globalization. Focusing on the rice-producing districts of Piedmont and Lombardy, the Article argues that the resilience of Italian rice production cannot be explained solely by agronomic or economic factors. Rather, it depends on a dense legal and institutional framework that structures water governance, quality control, market organization, and contractual relations across the supply chain.

The Article develops three principal claims. First, it shows that the competitiveness of Italian rice production rests on an integrated model …

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 …

Translating The “Preposition + Which” Construction In English Legal Texts Into Indonesian, Doni Jaya

Paradigma: Jurnal Kajian Budaya

Legal text translation is challenging because of its emphasis on semantic and syntactic faithfulness, while ST structures do not always have correspondent TL equivalents. One of such structures is the English “preposition + which” (PW) construction. This construction can be difficult to translate into Indonesian because the language does not always have ready-to-use connectors to produce a structurally faithful translation, often forcing translators to take the easy way of using ungrammatical and unnatural connectors which becomes the hallmark of the Indonesian legalese style. This research seeks to examine various ways to translate PW constructions in a more grammatical and …

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.

Mobility And Power In Temp Work, Andrew Elmore

BYU Law Review

Labor mobility is an underdiscussed determinant of temp worker power. Drawing on original interviews with professional and blue-collar workers who work as and alongside temps, this Article shows how businesses use staffing agencies to restrict the labor mobility of contingent workers. Staffing agencies limit worker mobility by imposing user- and worker-side contractual restraints while misrepresenting themselves to temp workers as their sole employer. They also exploit state-imposed mobility limitations by recruiting foreign nationals and people leaving incarceration and channeling them into their most precarious work. This enables clients to dismantle internal labor markets and to fill staffing shortages without raising …

Zmiany W Przepisach Dyrektywy Mcd – Postulaty De Lege Ferenda W Zakresie Ochrony Konsumenta-Kredytobiorcy Hipotecznego, Piotr Gałązka, Weronika Tołściuk

internetowy Kwartalnik Antymonopolowy i Regulacyjny (internet Quarterly on Antitrust and Regulation)

The object of this article is to assess the functioning thus far of Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on consumer credit agreements relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (Mortgage Credit Directive, MCD) in the mortgage market in the European Union, in light of calls for consumer protection of mortgage credit services made by representatives of consumer organisations, lenders, supervisors of financial market institutions, and EU institutions. The Directive has generally led to an increase in the level of consumer protection acting …

Still A Deal With The Devil? Mary Carter Agreements And The Integrity Of Civil Jury Trials, Lane Hammond

Mercer Law Review

This Comment examines how jurisdictions treat Mary Carter agreements today and why Georgia should prohibit them entirely. It explores a case currently on appeal before the Court of Appeals of Georgia that raises the issue, draws parallels to prohibited trial tactics under the Bruton Doctrine, and explains why limiting instructions fail to cure the prejudice these agreements create. It raises questions about whether Mary Carter agreements even present a justiciable controversy. It also considers the tension between the competing values at stake: promoting settlements and judicial efficiency on one side, versus safeguarding fairness and the integrity of litigation on the …

Saints, Sinners, And Standard Agreements: Rethinking Morality Clauses In Georgia, Margaret Shehane

Mercer Law Review

This Comment situates morality clauses within Georgia’s broader contract and employment law framework, while also drawing lessons from New York and California. Part I traces the history and function of morality clauses, distinguishing between express and implied provisions, as well as reputational and conduct-based triggers. Part II examines how New York and California have approached morality clauses, emphasizing their reliance on public policy to limit enforceability. Part III turns to Georgia, analyzing how morality provisions are interpreted in light of at-will employment, identifying common drafting pitfalls, and offering practical guidance for attorneys. Part IV looks ahead, considering how Georgia law …

Czy Możliwe Jest Utrzymanie W Mocy Umowy Kredytu Hipotecznego Odnoszącego Się Do Waluty Obcej Zawierającej Niedozwolone Postanowienia Określające Mechanizm Indeksacji? Kilka Uwag O Braku Możliwości Podziału Abuzywnych Klauzul Indeksacyjnych Na Gruncie Orzecznictwa Trybunału Sprawiedliwości Unii Europejskiej I Sądów Krajowych, Marta Fabiszewska

internetowy Kwartalnik Antymonopolowy i Regulacyjny (internet Quarterly on Antitrust and Regulation)

The purpose of this paper is to analyze the case law of the Court of Justice of the European Union and national courts on the possibility of separating out abusive clauses defining the indexation mechanism, the elimination of an isolated element of such clauses, and, as a result, the possibility of preserving the validity and applicability of the overall mortgage loan agreement referring to a foreign currency. This issue is currently among the most significant jurisprudential problems arising on the ground of court cases on mortgage loan agreements between consumer-borrowers and banks.

The author aims to answer the question of …

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 …

Government Regulations-Consumer And Worker Protection Laws Business Law, Lorelei Salas

Open Educational Resources

This assignment challenges the students to dive deeper into consumer and worker protection laws, by expanding their knowledge base or exploring personal experience with these issues.

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

Greenhat’S Greenlight To The Cftc: The Case For A Jurisdictional Shift Of Financial Transmission Rights From The Federal Energy Regulatory Commission To The Commodity Futures Trading Commission, Timothy K. Shaw Ii

DePaul Business & Commercial Law Journal

Regional Transmission Organizations and Independent System Operators are a relatively new platform to buy and sell wholesale electricity and transmission service of that electricity. These groundbreaking organizations have been around since 1996 after the Federal Energy Regulatory Commission (“FERC”) issued Order 888. FERC regulates the physical electricity wholesale sale and transmission service market managed by a Regional Transmission Organization (“RTO”) or Independent System Operator (“ISO”),through its Federal Power Act mandate. Many RTOs and ISOs offer a product called a Financial Transmission Right (“FTR”). Traditionally, FTRs assist the holder by providing price certainty, or a hedge, in the capacity market. This …