The Elements of Contract Drafting With Questions and Clauses for Consideration

by Kuney, George W.

• ISBN13: 9780314266040
• ISBN10: 0314266046
• Edition: 3rd
• Format: Paperback
• Copyright: 2011-05-06
• Publisher: West Academic

Summary

This book is a practical, brief, to-the-point text covering the fundamental working parts of a contract and how one should be prepared. It provides an overview of the issues and processes involved in drafting contracts and transactional documents. It enables students to analyze the basic structure of contracts and other deal documents and develop the macro and micro techniques used to efficiently create those documents with precision and clarity. It provides the principles necessary for an understanding of the common structures of transactional documents and their provisions that can then be applied to specific transactions. Beyond structural drafting, this book also covers some of the substantive laws that may affect contracts.

Table of Contents

Acknowledgements	p. V
Table of Cases	p. xiii
Introduction	p. 1
Fundamental Considerations in Contract Drafting	p. 5
The Context: The Deal Timeline: Big or Little, Deals Follow a Pattern	p. 5
The Drafting Process-Step by Step	p. 7
The Goal: Practical, Precise Documents	p. 7
Shelby County State Bank v. Van Diest Supply Company	p. 9
Plain English; Clear & Conspicuous Drafting	p. 18
American General Finance, Inc. v. Bassett (In Re Basset)	p. 19
Questions & Clauses for Consideration	p. 23
Attention to Detail; Pride in Your Work; Neatness Counts	p. 24
Questions & Clauses for Consideration	p. 24
Thinking Like a Transactional Lawyer	p. 26
The Form of Transactional Documents	p. 29
General Outline	p. 29
Transactional Documents Memorialize a Deal	p. 30
The Document's Title and Introduction	p. 30
Preambles; Recitals; Transitioning Into the Agreement	p. 31
Definitions and Defined Terms: A Powerful Technique to Enhance Meaning and Readability	p. 32
Questions & Clauses for Consideration	p. 35
Information Schedules	p. 36
Informational Documents	p. 36
Supplemental Documents	p. 36
Substantive Provisions as Exhibits	p. 37
The Table of Contents	p. 37
Cross-references and Paragraph References	p. 37
Headings	p. 37
Substantive Numbers	p. 38
Exemplar Considerations	p. 39
Drafting Rules	p. 41
The Active Voice-Who does What to Whom, When	p. 41
Herein	p. 41
And/Or-Ambiguity Alert	p. 42
Shall, Will, Must and May	p. 42
Doublets, Triplets, and Other Forms of Synonymous Repetition	p. 43
Omit Needless Words	p. 45
Keep Related Words Together	p. 46
Use Familiar and Concrete Words; Avoid Lawyerisms	p. 47
Use Normal Word Order and Inversions for Emphasis	p. 47
Hyphens	p. 47
Parentheses	p. 48
Some Basic Rules of Grammar Relevant to Drafting Contracts	p. 48
Misused and Abused Words and Expressions	p. 51
Quotation Marks	p. 53
Spacing After Sentences	p. 53
Qstions & Clauses for Consideration	p. 53
Document Review and Comments	p. 57
Comments and Mark-Ups Indicate Interest in Your Work	p. 57
Different Considerations for Different Reviewers	p. 57
Your Colleagues and Supervisors	p. 57
Client Review	p. 59
Review by Opposing Counsel	p. 59
Control of the Document, Making Revisions, and Subsequent Drafts	p. 61
Reviewing Documents-A Ten Point Checklist	p. 62
A Cautionary Tale	p. 64
Deposit Extortion: A Poorly Drafted Contract Leads to a Lawsuit	p. 64
Consideration and the Term of the Agreement	p. 69
Consideration	p. 69
Allocation of Consideration	p. 70
Questions & Clauses for Consideration	p. 71
Variable Consideration	p. 72
Questions & Clauses for Consideration	p. 73
The Term of the Agreement	p. 74
Questions & Clauses for Consideration	p. 75
Conditions	p. 77
Questions & Clauses for Consideration	p. 80
Representations, Warranties, Covenants, Guaranties, Indemnities	p. 83
General Rules for Representations, Warranties, and Covenants	p. 84
Representations	p. 84
Linden Partners v. Wilshire Linden Assocs	p. 86
Warranties	p. 96
CBS Inc. v. Ziff-Davis Publishing Co. et al	p. 97
Note	p. 103
Covenants	p. 103
The UCC Approach	p. 104
General Rules and Techniques: Typical Representations & Warranties	p. 104
Guaranties, Indemnities, and Releases	p. 106
Cautionary Procedures	p. 108
Questions & Clauses for Consideration	p. 109
Events of Default and Remedies	p. 115
Beal Bank v. Crystal Properties, Ltd., L.P. (In re Crystal Properties, ltd., L.P.)	p. 117
Questions & Clauses for Consideration	p. 130
The Original Great American Chocolate Chip Cookie Co., Inc. V. River Valley Cookies, Ltd	p. 131
The Original Great American Chocolate Chip Cookie Co., Inc. V. River Valley Cookies, Ltd	p. 139
Clause for Consideration	p. 148
Questions	p. 151
The Import and Scope of Boilerplate	p. 153
Questions & Clauses for Consideration	p. 154
Arbitration and Other Alternative Dispute Resolution Provisions	p. 161
Signature Blocks	p. 167
Introductory Language for Signatures	p. 167
Traditional Signature Blocks	p. 167
E-Signatures and Related Matters	p. 170
The E-Signature Act	p. 170
The Uniform Electronic Transactions Act	p. 171
Amending and Restating Agreements	p. 173
Questions & Clauses for Consideration	p. 174
Covenants and Agreements Not to Compete	p. 181
Questions & Clauses for Consideration	p. 182
Letters of Intent	p. 185
Why Use a Letter of Intent?	p. 185
The Risks of Using a Letter of Intent	p. 186
Enforceability and Drafting Points for Letters of Intent	p. 186
Beekman Invest. Partners, L.P. v. Alene Candles, Inc.	p. 187
Questions & Clauses for Consideration	p. 195
Opinions of Counsel	p. 201
Dean Foods Company v. Arthur J. Pappathanasi	p. 203
Bibliography	p. 231
Appendices
Secured Promissory Note	p. 237
Asset Purchase and Sale Agreement	p. 241
Real Property Lease	p. 267
Settlement Agreement	p. 279
Software License Agreement	p. 285
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