Episode 5 of the third season of the U.S. TV show “Suits,” set in a corporate New-York-but-actually-Toronto law firm, features the following exchange between the character Louis Litt, a goofy transactional partner (played by Rick Hoffman), and an associate by the name Simon, after Louis thrusts in Simon’s face an unspecified written assignment that Simon had submitted to Louis: Louis: … Read More
A couple weeks ago the following tweet was sent my way by @UtterlyMacabre: Many IT Ks have an “assumptions” section that functions like a disclaimer. What category of contract language would you call this? Shortly thereafter, @UtterlyMacabre disappeared from the Twitterverse. Too bad, because I thought that was a clever question. Before disappearing, @UtterlyMacabre steered me to two statements of … Read More
[Updated August 9, 2013: I bow to the wisdom of the commentariat! “Acme shall purchase” it is.] Acme and WidgetCo enter into a contract providing for Acme’s purchase of 1,000 widgets. WidgetCo delivers the widgets to Acme, along with an invoice. Acme pays the invoice. In that scenario, when does Acme purchase the widgets? I propose having the contract say, … Read More
Here are three instances, from EDGAR, of use of the phrase to the best of its [or his, her, or their] ability: The Company hereby engages the Consultant, and the Consultant hereby agrees to serve the Company to the best of his ability to provide financial advisory services to the Company during the Term (as defined below) as and when … Read More
While trawling the far reaches of the Netflix galaxy, I encountered that fixture of the Western canon, Star Trek II: The Wrath of Khan. I leave it to others to explore the glories of this oeuvre. What caught my attention is what happens at 54:00. Spock’s protege Saavik (below) reminds Admiral Kirk of General Order 15: No flag officer shall … Read More
You see confirms used to introduce statements of fact in a contract. Here are two examples from EDGAR: Each Loan Party (i) confirms that prior to, as of, during and following the funding of the Commitment, each Loan Party was not, and continues not to be, “insolvent” as that term is defined in Section 101(32) of the United States Bankruptcy … Read More
In the recent opinion of the Delaware U.S. District Court in Racing v. T-Mobile U.S. (here), the following contract language was at issue: VICI grants to [T-Mobile] the right to be the exclusive wireless carrier supplying wireless connectivity for the Porsche, Audi, and VW telematics programs beginning in model year 2011 with such exclusivity continuing throughout the Term of this … Read More
Although it’s standard to refer to contract “rights,” in this November 2012 post on rethinking the “no assignment” provision, I said the following about “rights”: It’s unclear what “rights” refers to. (I don’t use the word “rights” anywhere in MSCD.) I think it refers to discretion granted to a party under an agreement and any remedy that a party has under … Read More
Consider the following: Orbitz may refuse to deliver Shares to the Employee if Employee fails to comply with Employee’s obligations in connection with the Tax Related Items. Refusal is in response to a request. Instead of may refuse, I’d always use that standard component of language of discretion, is not required to. It allows you to address the issue on a more fundamental … Read More
There seems to be no end to the bizarro verb structures that drafters opt for. Today I saw the following in a contract: “Consultant will be expected to perform the Services.” I said to myself, WTF! I promptly went on the SEC’s EDGAR system, where I had no trouble finding instances of will be expected to. It occurs in 289 … Read More
