Preface |
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xxiii | |
Acknowledgements |
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xxv | |
About the Authors |
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xxvii | |
Chapter 1 Introduction |
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1 | (8) |
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1 | (1) |
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1.2 Learning to draft from scratch and from precedents |
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1 | (2) |
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1.3 Learning how to critically review contract provisions to create your own provision |
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3 | (2) |
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1.4 Contract drafting for non-native English speakers |
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5 | (1) |
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1.5 Final words of caution |
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6 | (1) |
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7 | (2) |
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Exercise 1-1 Finding headings in a contract |
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7 | (1) |
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Exercise 1-2 Drafting a provision |
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7 | (1) |
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Exercise 1-3 Finding words in a contract I |
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7 | (1) |
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Exercise 1-4 Finding words in a contract II |
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8 | (1) |
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Exercise 1-5 The new deal-phone call with Cynthia Adler |
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8 | (1) |
Chapter 2 Preliminary Drafting Concerns |
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9 | (14) |
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2.1 Authoring the draft and ethical drafting |
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10 | (2) |
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2.2 Understanding the business deal |
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12 | (1) |
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2.3 The contract's audience |
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13 | (1) |
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2.4 The importance of governing law |
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14 | (2) |
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2.4.1 Contract law in the United States |
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14 | (1) |
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2.4.2 Canons of contract interpretation |
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15 | (1) |
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2.4.3 "Governing law" clauses |
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16 | (1) |
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16 | (4) |
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20 | (3) |
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Exercise 2-1 Drafting provisions that comply with governing law |
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20 | (2) |
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Exercise 2-2 The new deal-second phone call with Cynthia Adler |
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22 | (1) |
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Exercise 2-3 The new deal-making a list of questions |
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22 | (1) |
Chapter 3 Contract Structure and Formatting |
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23 | (18) |
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3.1 Basic parts of a contract |
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23 | (6) |
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3.1.1 The beginning of a contract |
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23 | (2) |
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3.1.2 The middle of a contract |
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25 | (4) |
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25 | (1) |
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26 | (1) |
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c Alternative dispute resolution provisions |
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27 | (1) |
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d Miscellaneous provisions |
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28 | (1) |
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3.1.3 The end of a contract |
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29 | (1) |
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29 | (1) |
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30 | (2) |
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32 | (1) |
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33 | (8) |
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Exercise 3-1 Comparing contract structures |
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33 | (1) |
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Exercise 3-2 Brainstorming prior to drafting |
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34 | (1) |
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Exercise 3-3 Drafting contract headings I |
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35 | (1) |
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Exercise 3-4 Drafting contract headings II |
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36 | (1) |
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Exercise 3-5 Reconstruct a contract |
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37 | (1) |
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Exercise 3-6 Add to your vocabulary list |
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38 | (1) |
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Exercise 3-7 The new deal-first outline of the contract |
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38 | (3) |
Chapter 4 Defined Terms |
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41 | (14) |
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4.1 Creating defined terms |
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42 | (2) |
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44 | (3) |
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4.2.1 Do not create one-shot definitions |
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44 | (1) |
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4.2.2 Do not include substantive provisions in definitions |
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44 | (1) |
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4.2.3 Do not use "circular" definitions |
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45 | (1) |
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4.2.4 Do not provide a definition of a defined term within another definition |
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45 | (1) |
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4.2.5 Use of including in the definition |
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45 | (1) |
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4.2.6 Use of excluding in the definition |
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46 | (1) |
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4.2.7 Precisely identify external documents, statutes, or treaties in definitions |
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46 | (1) |
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4.3 Where to place a definition |
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47 | (3) |
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4.3.1 Embedded definitions |
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47 | (1) |
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47 | (1) |
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47 | (1) |
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4.3.2 A definition section |
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48 | (2) |
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4.4 Consistently use the defined term |
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50 | (1) |
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50 | (5) |
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Exercise 4-1 Defining Person |
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50 | (1) |
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Exercise 4-2 Fill in the defined term |
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50 | (2) |
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Exercise 4-3 Define a category I |
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52 | (1) |
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Exercise 4-4 Define a category II |
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52 | (1) |
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Exercise 4-5 Compose definitions |
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52 | (1) |
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Exercise 4-6 Redrafting definitions |
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52 | (1) |
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Exercise 4-7 Consistency check |
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53 | (1) |
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Exercise 4-8 Add to your vocabulary list |
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53 | (1) |
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Exercise 4-9 The new deal-drafting defined terms |
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54 | (1) |
Chapter 5 The Beginning of the Contract |
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55 | (12) |
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55 | (2) |
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5.2 The introductory statement |
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57 | (4) |
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5.2.1 Referencing the contract |
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57 | (1) |
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5.2.2 The date of the contract |
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57 | (1) |
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5.2.3 Introducing the contracting parties |
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58 | (3) |
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61 | (1) |
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5.4 The transitional clause |
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62 | (1) |
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5.5 Note: Beginning a lengthy, complex contract |
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62 | (1) |
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63 | (4) |
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Exercise 5-1 Phrasing of introductory statement |
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63 | (1) |
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Exercise 5-2 Phrasing of recitals |
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63 | (1) |
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Exercise 5-3 Content of recitals |
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63 | (2) |
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Exercise 5-4 Entity names |
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65 | (1) |
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Exercise 5-5 Add to your vocabulary list |
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65 | (1) |
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Exercise 5-6 The new deal-drafting the beginning of the contract |
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65 | (2) |
Chapter 6 The Importance of Clear and Concise Writing |
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67 | (8) |
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6.1 The key principles for good drafting |
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68 | (1) |
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68 | (2) |
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69 | (1) |
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6.2.2 Syntactic ambiguity |
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69 | (1) |
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6.2.3 Contextual ambiguity |
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70 | (1) |
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70 | (2) |
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72 | (3) |
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72 | (1) |
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Exercise 6-2 Ambiguity II |
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72 | (1) |
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Exercise 6-3 Ambiguity III |
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72 | (1) |
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Exercise 6-4 Add to your vocabulary list |
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73 | (2) |
Chapter 7 Basic Categories of Contract Provisions |
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75 | (40) |
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7.1 Obligations and corresponding rights |
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77 | (6) |
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7.1.1 Purpose of obligations |
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77 | (1) |
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7.1.2 Drafting obligations |
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78 | (3) |
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7.1.3 Obligations limited to the contracting parties |
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81 | (1) |
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7.1.4 Corresponding rights |
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82 | (1) |
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83 | (2) |
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7.2.1 Use the operative word may |
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83 | (1) |
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7.2.2 Attempting to expand or restrict a discretionary power |
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84 | (1) |
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7.2.3 Using is not required to |
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84 | (1) |
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7.3 Procedural statements |
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85 | (1) |
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86 | (2) |
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7.4.1 The condition stated in a dependent clause or a phrase and the consequence stated in an independent clause |
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86 | (2) |
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7.4.2 The consequence stated in a phrase and the condition stated in an independent clause |
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88 | (1) |
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7.4.3 Sentence expressly stating the condition |
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88 | (1) |
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88 | (3) |
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88 | (3) |
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a Types of representations |
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89 | (1) |
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b Drafting representations |
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89 | (2) |
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91 | (1) |
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91 | (1) |
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92 | (1) |
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93 | (2) |
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7.8.1 The rule and the exception stated in one sentence |
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93 | (1) |
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7.8.2 The rule and the exception stated in separate sentences |
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94 | (1) |
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7.8.3 General exceptions to the entire contract |
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94 | (1) |
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95 | (20) |
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Exercise 7-1 Understanding the use of modals |
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95 | (1) |
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Exercise 7-2 Evaluating modals in the context of contracts |
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95 | (5) |
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Exercise 7-3 Evaluating modals in a contract |
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100 | (1) |
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Exercise 7-4 Turning right provisions into obligation provisions |
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101 | (1) |
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Exercise 7-5 Discretionary powers I |
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102 | (1) |
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Exercise 7-6 Discretionary powers II |
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102 | (1) |
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103 | (1) |
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Exercise 7-8 Rules and exceptions |
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104 | (2) |
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Exercise 7-9 Adding provisions to a contract |
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106 | (1) |
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Exercise 7-10 Add to your vocabulary list |
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106 | (1) |
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Exercise 7-11 The new deal-identifying basic provisions |
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106 | (9) |
Chapter 8 Word Choice |
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115 | (30) |
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8.1 Choosing simple and concise words |
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115 | (7) |
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116 | (1) |
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117 | (3) |
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8.1.3 Coupled words and numerals |
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120 | (2) |
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120 | (1) |
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b Special considerations for expressing monetary amounts |
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121 | (1) |
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8.2 Avoiding ambiguities arising from single words or phrases |
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122 | (6) |
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122 | (2) |
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8.2.2 Words and phrases conveying time standards and duration |
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124 | (4) |
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124 | (2) |
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b Miscellaneous expressions of duration |
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126 | (2) |
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128 | (1) |
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128 | (3) |
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129 | (1) |
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129 | (2) |
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8.5 Avoiding contractions |
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131 | (1) |
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8.6 Choosing words that allocate risk |
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131 | (2) |
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133 | (12) |
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Exercise 8-1 Replacing legalese I |
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133 | (1) |
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Exercise 8-2 Drafting a provision based on precedents |
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134 | (1) |
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Exercise 8-3 Replacing legalese II |
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134 | (1) |
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Exercise 8-4 Replacing coupled synonyms |
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135 | (1) |
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Exercise 8-5 Numbers as numerals or words |
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135 | (1) |
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Exercise 8-6 Composing provisions-time references |
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136 | (2) |
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Exercise 8-7 Turning notes into provisions |
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138 | (1) |
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138 | (1) |
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139 | (1) |
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139 | (2) |
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Exercise 8-11 Notwithstanding |
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141 | (1) |
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Exercise 8-12 Allocation of risk I |
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141 | (1) |
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Exercise 8-13 Defining adversely in greater detail |
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142 | (1) |
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Exercise 8-14 Allocation of risk II |
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143 | (1) |
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Exercise 8-15 Add to your vocabulary list |
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144 | (1) |
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Exercise 8-16 The new deal-drafting the provisions |
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144 | (1) |
Chapter 9 Sentence Structure |
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145 | (32) |
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9.1 Drafting simple and concise sentences |
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145 | (1) |
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9.2 Subject, verb, and object placement |
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146 | (1) |
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9.3 Active voice versus passive voice |
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147 | (2) |
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149 | (2) |
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149 | (1) |
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9.4.2 Empty verbs in nominalizations |
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149 | (2) |
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151 | (1) |
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9.6 Drafting advice for non-native speakers |
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152 | (8) |
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9.6.1 General rules for article usage |
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152 | (2) |
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9.6.2 Count versus non-count nouns |
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154 | (1) |
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9.6.3 Article usage in contract drafting |
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155 | (1) |
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156 | (1) |
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9.6.5 Non-defining use of the relative pronoun |
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157 | (1) |
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9.6.6 Defining use of the relative pronoun |
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157 | (2) |
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9.6.7 Choosing appropriate prepositions |
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159 | (1) |
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159 | (1) |
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9.6.9 Large collections of legal text |
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160 | (1) |
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9.7 Enumerating and tabulating complex sentences |
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160 | (6) |
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160 | (2) |
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162 | (4) |
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163 | (1) |
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164 | (2) |
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166 | (1) |
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9.7.4 Avoid overusing enumeration and tabulation |
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166 | (1) |
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166 | (11) |
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Exercise 9-1 Sentence length |
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166 | (1) |
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Exercise 9-2 Subject, verb, and object placement |
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167 | (1) |
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Exercise 9-3 Use of active voice versus passive voice I |
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167 | (2) |
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Exercise 9-4 Use of active voice versus passive voice II |
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169 | (1) |
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Exercise 9-5 Nominalizations |
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169 | (1) |
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Exercise 9-6 Empty subjects |
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170 | (1) |
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Exercise 9-7 Restrictive and non-restrictive use of relative clauses |
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171 | (2) |
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Exercise 9-8 Dangling participles |
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173 | (1) |
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173 | (1) |
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Exercise 9-10 Prepositions I |
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174 | (1) |
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Exercise 9-11 Prepositions II |
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174 | (1) |
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Exercise 9-12 Using the correct article |
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175 | (1) |
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Exercise 9-13 Using the indefinite or definite article I |
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175 | (1) |
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Exercise 9-14 Using the indefinite or definite article II |
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175 | (1) |
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Exercise 9-15 Explaining the use or omission of the indefinite or definite article |
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176 | (1) |
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Exercise 9-16 Add to your vocabulary list |
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176 | (1) |
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Exercise 9-17 The new deal-drafting the provisions |
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176 | (1) |
Chapter 10 Core Provisions |
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177 | (54) |
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10.1 Primary performance or primary obligation provisions |
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178 | (3) |
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10.1.1 Primary performatives |
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179 | (1) |
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10.1.2 Exchanging primary obligations |
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180 | (1) |
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10.2 Term of the contract |
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181 | (2) |
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181 | (1) |
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182 | (1) |
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10.2.3 Extension or renewal |
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182 | (1) |
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183 | (2) |
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185 | (2) |
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10.4.1 Place, date, and time |
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185 | (1) |
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186 | (1) |
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10.5 Representations and risk-shifting |
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187 | (8) |
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10.5.1 Knowledge qualifiers |
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187 | (1) |
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10.5.2 Materiality qualifiers |
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188 | (1) |
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189 | (1) |
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190 | (5) |
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a When the accuracy of a representation is determined |
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190 | (1) |
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b "Bring-down" provisions |
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191 | (1) |
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192 | (3) |
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195 | (4) |
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10.6.1 Express warranties |
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196 | (2) |
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10.6.2 Implied warranty of merchantability |
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198 | (1) |
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10.6.3 Implied warranty for a particular purpose |
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199 | (1) |
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10.7 Warranty disclaimer clauses |
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199 | (3) |
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10.7.1 Disclaimers of express warranties |
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199 | (1) |
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10.7.2 Disclaimers of implied warranties |
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200 | (1) |
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10.7.3 "Conspicuous" requirement |
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201 | (1) |
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10.8 Non-competition clauses |
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202 | (3) |
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10.9 Confidentiality clauses |
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205 | (9) |
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10.9.1 Confidential information: trade secrets versus non-trade secrets |
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206 | (1) |
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10.9.2 Basic components of a confidentiality clause |
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207 | (1) |
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10.9.3 Defining confidential information |
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208 | (3) |
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10.9.4 The receiving party's restrictive obligation |
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211 | (2) |
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10.9.5 The receiving party's duty to notify of unauthorized use or disclosure |
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213 | (1) |
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10.9.6 The receiving party's duty to return information |
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213 | (1) |
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10.9.7 The holding party's remedies |
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214 | (1) |
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214 | (1) |
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214 | (5) |
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10.10.1 Indemnification clauses |
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214 | (4) |
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10.10.2 Escrow or insurance clauses |
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218 | (1) |
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219 | (12) |
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Exercise 10-1 Performatives |
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219 | (1) |
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Exercise 10-2 Exchanging primary obligations |
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219 | (1) |
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Exercise 10-3 Analyzing effective date and duration clauses |
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220 | (1) |
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Exercise 10-4 Extension/renewal clauses I |
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220 | (1) |
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Exercise 10-5 Extension/renewal clauses II |
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220 | (1) |
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Exercise 10-6 Effective date-duration-extension |
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221 | (1) |
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Exercise 10-7 Monetary provisions |
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222 | (1) |
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Exercise 10-8 Closing provisions |
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223 | (1) |
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Exercise 10-9 Representations: knowledge-shifting qualifiers |
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224 | (1) |
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Exercise 10-10 Representations: materiality qualifiers |
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225 | (1) |
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Exercise 10-11 Warranties: disclaimers |
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225 | (1) |
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Exercise 10-12 Non-competition clauses |
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225 | (1) |
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Exercise 10-13 Confidentiality clauses |
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225 | (1) |
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Exercise 10-14 Indemnifications |
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226 | (3) |
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Exercise 10-15 Term-effective date |
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229 | (1) |
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Exercise 10-16 Add to your vocabulary list |
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229 | (1) |
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Exercise 10-17 The new deal-drafting the core provisions |
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229 | (2) |
Chapter 11 Exit Provisions |
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231 | (14) |
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11.1 Events triggering a premature ending |
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232 | (1) |
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11.2 Premature ending by mutual consent |
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232 | (1) |
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11.3 Premature ending by a change in law |
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232 | (1) |
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11.4 Drafting "event of default" clauses |
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233 | (5) |
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11.4.1 Immediate event of default |
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233 | (1) |
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11.4.2 Potential event of default |
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233 | (2) |
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235 | (3) |
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235 | (1) |
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235 | (1) |
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c Money damages and "limitation on damage" clauses |
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236 | (1) |
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237 | (1) |
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237 | (1) |
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237 | (1) |
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237 | (1) |
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237 | (1) |
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11.5 Post-termination obligations and survival clauses |
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238 | (1) |
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238 | (7) |
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Exercise 11-1 Comparing termination clauses |
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238 | (1) |
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Exercise 11-2 Revising a termination clause |
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239 | (1) |
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Exercise 11-3 Comparing "right to cure" provisions |
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239 | (2) |
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Exercise 11-4 Revising a "right to cure" provision |
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241 | (1) |
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Exercise 11-5 Termination clauses-bankruptcy |
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241 | (1) |
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Exercise 11-6 Comparing termination clauses |
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241 | (1) |
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Exercise 11-7 Attention to detail in termination clauses |
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242 | (1) |
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Exercise 11-8 Identifying effects of termination on contracting parties |
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242 | (1) |
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Exercise 11-9 Comparing survival clauses |
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243 | (1) |
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Exercise 11-10 Revising a survival clause |
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243 | (1) |
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Exercise 11-11 Add to your vocabulary list |
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243 | (1) |
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Exercise 11-12 The new deal-drafting the exit provisions |
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243 | (2) |
Chapter 12 Alternative Dispute Resolution Provisions |
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245 | (22) |
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245 | (3) |
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12.2 Informal negotiation provisions |
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248 | (1) |
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12.3 Mediation provisions |
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249 | (3) |
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12.4 Arbitration provisions |
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252 | (5) |
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257 | (10) |
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Exercise 12-1 Mediation clauses I |
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257 | (2) |
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Exercise 12-2 Negotiation clauses I |
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259 | (1) |
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Exercise 12-3 Negotiation clauses II |
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259 | (1) |
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Exercise 12-4 Arbitration clauses I |
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259 | (3) |
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Exercise 12-5 Arbitration clauses II |
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262 | (1) |
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Exercise 12-6 Arbitration clauses III |
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262 | (1) |
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Exercise 12-7 Arbitration clauses IV |
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262 | (1) |
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Exercise 12-8 Arbitration clauses V |
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263 | (1) |
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Exercise 12-9 Mediation clauses II |
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264 | (1) |
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Exercise 12-10 Mediation clauses III |
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264 | (1) |
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Exercise 12-11 Arbitration clauses VI |
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264 | (1) |
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Exercise 12-12 Add to your vocabulary list |
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265 | (1) |
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Exercise 12-13 The new deal-drafting the ADR provisions |
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265 | (2) |
Chapter 13 Miscellaneous Provisions |
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267 | (54) |
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13.1 "Governing law" clause |
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269 | (5) |
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13.2 "Forum selection" clause |
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274 | (2) |
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13.3 "Choice of language" clause |
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276 | (1) |
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13.4 "Force majeure" clause |
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277 | (7) |
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13.4.1 Defining the force majeure event |
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278 | (4) |
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13.4.2 Exceptions to excusing non-performance |
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282 | (1) |
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13.4.3 Giving notice of the force majeure event |
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282 | (1) |
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13.4.4 Giving proof of the force majeure event |
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282 | (1) |
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13.4.5 Overcoming the force majeure event |
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283 | (1) |
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283 | (1) |
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13.4.7 Notice of the end of a force majeure event |
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283 | (1) |
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13.4.8 Termination or renegotiation of the contract |
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283 | (1) |
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283 | (1) |
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13.4.10 Example "force majeure" clause |
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284 | (1) |
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284 | (3) |
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13.6 "Assignment" and "delegation" clauses |
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287 | (8) |
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13.6.1 "Assignment" and "anti-assignment" clauses |
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288 | (4) |
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13.6.2 "Delegation" and "anti-delegation" clauses |
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292 | (3) |
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13.7 "Successors and assigns" clause |
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295 | (3) |
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298 | (2) |
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13.9 "No oral modification" and "no oral waiver" clauses |
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300 | (3) |
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13.10 "Severability" clause |
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303 | (3) |
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13.11 "Counterparts" clause |
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306 | (1) |
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306 | (15) |
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Exercise 13-1 "Force majeure" clauses I |
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306 | (2) |
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Exercise 13-2 "Force majeure"clauses II |
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308 | (1) |
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Exercise 13-3 "Force majeure"clauses III |
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309 | (1) |
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Exercise 13-4 "Notice" clauses |
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309 | (1) |
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Exercise 13-5 "Governing law"and "forum selection" clauses |
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310 | (1) |
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Exercise 13-6 "Governing law"clauses I |
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311 | (1) |
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Exercise 13-7 "Choice of language" clauses |
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312 | (1) |
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Exercise 13-8 "Anti-assignment" and "anti-delegation" clauses |
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313 | (1) |
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Exercise 13-9 "Assignment" and "anti-assignmenrclauses |
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314 | (1) |
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Exercise 13-10 "Successors and assigns" clauses |
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314 | (1) |
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Exercise 13-11 "Severability"clauses I |
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314 | (2) |
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Exercise 13-12 "Severability"clauses II |
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316 | (1) |
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Exercise 13-13 "Waiver" clauses |
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316 | (1) |
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Exercise 13-14 "Counterparts"clauses I |
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317 | (1) |
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Exercise 13-15 Mind-mapping |
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318 | (1) |
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Exercise 13-16 "Counterparts" clauses II |
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318 | (1) |
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Exercise 13-17 Add to your vocabulary list |
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318 | (1) |
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Exercise 13-18 The new deal-drafting the miscellaneous provisions |
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319 | (2) |
Chapter 14 The End of the Contract |
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321 | (6) |
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14.1 Drafting the concluding statement |
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321 | (1) |
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322 | (2) |
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324 | (1) |
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325 | (1) |
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325 | (2) |
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Exercise 14-1 The new deal-drafting the end of the contract |
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325 | (2) |
Glossary of Terms |
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327 | (10) |
Index |
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337 | |