After deciding, about ten years ago, that I wanted to be The Contract-Drafting Guy®, one of the first things I did was contact every law-firm “knowledge management” person I could track down, so that I could discuss with them how I might help their firm put its contract-drafting process on a rational footing. The response? [...]
Longtime reader Jim Brashear, now general counsel of Zix Corporation, shared with me a series of exchanges he engaged in regarding locking, and unlocking, Word draft of contracts; I’ve copied them below. This isn’t an issue I have any experience with, as I no longer do deals, but the idea of locking Word documents strikes me [...]
In this post on his Contract Analysis and Contract Standards blog, Kingsley Martin notes that empirical analysis of contracts allows you to determine what they actually say as opposed to what you think they say. That makes sense, but it wasn’t what caught my eye. Instead, I noted this table, which is from Stewart J. [...]
This American Lawyer article about the lawyers of the “Forbes 400″ reminded me that real-estate developer Sam Zell once said, regarding his first days as a lawyer, “I spent my first week drafting a contract. It was deadly.” (See this WSJ Law Blog item for complete details.) So, is contract drafting deadly? For junior lawyers, [...]
Via Above the Law, I learned of this article in the Los Angeles Times. Frank McCourt, owner of the L.A. Dodgers baseball team, is engaged in a scorched-earth divorce battle, and this article details how Larry Silverstein, a lawyer for McCourt, apparently took it upon himself to change one word in a signed contract between [...]
A crucial part of drafting any contract is making sure that you’ve worked through the “what ifs”—that you’ve addressed all conceivable scenarios and that nothing has fallen through the cracks. When you’re dealing with a complex transaction, accomplishing that requires specialized expertise and sufficient time and patience to wrestle with lengthy and and intricate documentation. [...]
When it comes to contract drafting, change is tough. For one thing, it’s precedent-driven. And it’s a team sport—instead of being able to draft in splendid isolation, you may well have to take into account the preferences of others on your side of the transaction, not to mention the preferences of those on the other [...]
In the article on arbitration versus litigation that I mentioned in this post, a couple of the litigators interviewed noted wistfully that they’re almost never consulted about what dispute-resolution provisions to include in a given contract. That raises a general question: Do you ever consult litigators when drafting? Do you think it adds value to [...]
There’s been quite a bit of blogosphere chatter recently about lawyers and plagiarism. The most recent salvo is this post by Peter Friedman, who teaches legal analysis and writing at Case Western Reserve University School of Law. In my cloistered way, I pay real attention only when the discussion touches on contract drafting. And here’s [...]
I recently received the following inquiry from longtime reader John “Fitz” Fitzpatrick: Pardon me if I missed a blog discussion on e-signature (have you had one?), but recently a bunch of companies have requested that we sign our contracts with them using e-signature through a company called EchoSign. Nice idea in principle, but I have [...]
I noted with interest this article on the website of the Association for Corporate Counsel. It’s entitled “Top Ten Innovations to Improve Enterprise-Wide Contract Management,” and it’s by Nancy Jessen and Bret Baccus of Huron Consulting Group. (Nancy was kind enough to be on the panel for the seventh in my series of “Drafting Clearer Contracts” [...]
Last week the New York Times ran two stories on legal outsourcing. The first (click here), by Heather Timmons, describes the growth of legal outsourcing in India. The second (click here) is a “City Room” blog item by John Eligon; in it, two BigLaw partners offer differing takes on outsourcing. I’ve written on this topic previously, but [...]
I happened upon this blog post by Susan Wilson of Alston+Bird regarding a recent Delaware Chancery Court opinion, Cambridge North Point LLC v. Boston and Maine Corporation. B&M argued that the court should hold the contract at issue unenforceable because B&M had signed the contact “without noticing” a new provision added to a draft by Cambridge. [...]
Yesterday I read this AmLaw Daily article by Steven J. Harper, a retired Kirkland & Ellis partner. It laments that the emphasis on short-term metrics at law firms means that increasingly, mentoring is falling by the wayside. Others, including the WSJ Law Blog and Above the Law, have waded in. I don’t doubt that the [...]
I just added the following to the manuscript of my forthcoming booklet “The Structure of M&A Contracts,” in the preface: But change is hampered by inertia. Deviating from standard language, no matter how defective, might spark debate, and debate creates delay and increases transaction costs. But inertia by itself isn’t a valid reason to reject [...]
Following on my recent post on document-comparison etiquette, longtime reader Jim Brashear sent me the following: I’d be interested in reading others’ thoughts and comments on document filename conventions and etiquette. For example, one distributes a set of draft documents with filenames (descriptive or otherwise), and one receives back from various counterparties their edits in [...]
I recently received the following message from a longtime reader: When you eventually revise MCSD to its third edition, could you consider adding an appendix that talks about redlining protocol? Here’s what routinely happens to me: I send the other side a draft marked using Microsoft Word’s “track changes” feature. Using that feature, they accept [...]
I don’t exchange drafts with people on the other side of a transaction, so generally I don’t have to worry about metadata. But if unlike me you actually do deals, you should be attuned to the risks of metadata and how to stay out of trouble. So you might want to read a new article [...]
I’ve written previously about ContractExpress, the document-assembly software developed by my partner and sponsor, Business Integrity. (See this February 2010 blog post for my Q&A with Andy Wishart, CTO of Business Integrity.) If you’d like to see what someone else has to say about the “cloud” version of ContractExpress, check out this Law Technology News [...]
If I were at the helm of a well-funded trade group called “The Association of Contract-Drafting Professionals” (yeah, right) and we were rolling out an advertising campaign, here’s what I might use as a slogan: Contract language is specialized. Leave it to specialists. Here’s the idea behind it: Contract language is akin to software code—it’s [...]
I thought it worthwhile to scoop from the comments to my recent post on deal risk an exchange I had with Vickie Pynchon of the Settle It Now Negotiation Blog regarding the connection between drafting a contract and negotiating it. Here’s the relevant part of Vickie’s comment: I’ve been devising a negotiation class for transactional lawyers [...]
I’m familiar with the ethics-in-drafting implications of including in a contract a provision that’s invalid. This topic is explored in Gregory M. Duhl‘s article “The Ethics of Contract Drafting,” which I mentioned in this February 2010 blog post. A provision can be invalid because it’s illegal. Gregory’s article gives as an example of an invalid [...]
I’ve written previously about signature-automation tools. (For one, see this April 2008 blog post.) Thanks to this post at Lawyerist.com, I see that Adobe has joined the fray, with its eSignatures beta. I haven’t yet checked it out; I’d be interested to know what you make of it and, in particular, how you think it [...]
I concluded my recent post on “good enough” in contract drafting by distinguishing the quality trade-offs inherent in the notion of “good enough” from the question of how risk-averse you want to be in drafting and negotiating deal terms. But those issues are related, in that both require you to determine when you reach the point of [...]
I’m coming late to the discussion of “good enough” in the context of legal services. I’ve encountered several blog posts that come at this issue from different perspectives, including this one by Carolyn Elefant, this one by Ron Friedmann, and this one by Wayne Schiess. Some of the recent discussion of this topic was prompted by Robert Capps’s [...]
In this item on his blog, the inestimable Ron Friedmann ponders the extent to which an “open source” approach to work product would save time and money for law departments. Here’s how Ron frames his thought experiment: So assume that confidentiality, privilege, and competitive issues matter not, that law departments contributed a significant portion of [...]
[Updated April 6, 2010: Another resource is this recent Law Technology News article on document assembly. Not that it says anything earthshattering.] The comments to last Tuesday’s post about Kingsley Martin’s new blog veered unexpectedly into a detailed discussion of document-assembly technologies. That got me to thinking that it might not be a bad idea for [...]
In March 2009 I did this Q&A with Kingsley Martin, developer of KIIAC, a software for creating templates and clause libraries for use in drafting contracts. I continue to think that KIIAC is invaluable for anyone looking to create a new template from a large group of comparable precedent contracts, so it was with interest that [...]
Winning hearts and minds one contracts person at a time is a noble undertaking, but things certainly would go faster if I could convert entire organizations. For any organization looking to put its contract process on a more efficient footing, the first step would be to adopt a rigorous house style. Compiling a dozen pages or [...]
I noticed that in their current “Question of the Week,” the ABA Journal is asking who is better equipped to promote change, law firms or their clients. I won’t attempt to answer that. But I’ll note that although most of the chatter on change in the legal profession seems to assume that clients will be [...]
Thanks to the Legal Writing Prof Blog, I learned of an article entitled “The Ethics of Contract Drafting.” It’s by Gregory M. Duhl, associate professor at William Mitchell College of Law. It will be appearing in the Lewis & Clark Law Review, but for those who can’t wait, it’s available on SSRN by clicking here. Here’s [...]
Longtime readers of this site will be familiar with the name Business Integrity, developer of ContractExpress (formerly DealBuilder) document-assembly software. Fixing contract drafting involves fixing not only language but also process, and fixing the process means using document assembly. So I’ve long had a keen interest in document assembly. About three years ago I became [...]
Yesterday I spent the day at West’s headquarters in Eagan, Minnesota, with a dozen or so journalists and bloggers being introduced to WestlawNext, the next generation of Westlaw. More about that next week, when WestlawNext is launched. But kicking the tires of WestlawNext caused me to consider how computer-assisted legal research is used in contract [...]
Recently I’ve been having more discussions with companies regarding redrafting their templates. In particular, I recently responded to an RFP (“request for proposal”) from an international company that wanted to redraft its commercial-contract templates. I lost on price, which is frustrating, but this exercise provided a useful introduction to the realities of the no-discussion, and-the-winner-is [...]
Last week’s class in my Penn Law course on contract drafting was devoted to a conference call on the topic of contract drafting at law firms. Longtime readers of this blog will recognize two of the participants: Michael Fleming, partner at Larkin & Hoffman in Minneapolis and well-known cyberspace guy, and Mike Wokasch, a savvy fourth-year [...]
I’m occasionally asked about how one might go about creating a searchable digital archive of a medium-sized company’s hard-copy contracts. It’s nothing I’ve had any direct experience with. If you have any suggestions, I’d be interested to hear them, and I suspect other readers would too.
The history of law-firm template-contract initiatives is not a happy one. Various factors conspire against a law firm successfully implementing and maintaining rigorous templates: Law firms are generally asked to draft a broad range of documents. Any one law firm may not be asked to handle a given kind of transaction often enough to warrant [...]
While lurking at the Business Integrity booth at the ACC annual meeting, I’ve had a chance to discuss with many people their company’s contract-drafting requirements. Some of those I’ve spoken with have been in the procurement department; others have been in sales. I haven’t spotted any particular pattern. That raised in my mind the question [...]
In this post on his licensinghandbook.com blog, Jeffrey Gordon suggests that lawyers should consider the value that contract specialists can bring to the contract process. That got me to wondering whether any such contract specialist would have to be a lawyer. In other words, if a nonlawyer works on a contract, does that constitute the authorized practice [...]
I was recently reminded of this article on the role of contract managers, as well as this follow-up article prompted by the recession. Both were written by Tim Cummins of the International Association for Contract and Commercial Management (IACCM). These articles caught my eye because my public seminars and my in-house seminars at companies are attended [...]
I was pleased to receive the other day the following wry email: You’ve inspired me since your presentation to our firm back in May. I used to be content with my drafting before I met you, but I now live in constant internal turmoil. My correspondent’s state of mind comes as no surprise. To master [...]
Publication of Chris Anderson’s book Free: The Future of a Radical Price has prompted a lot of online discussion about the extent to which a thriving business can be built on giving stuff away for free. At My Shingle, Carolyn Elefant has offered some thoughts on “Biglaw Free and the Solo.” Here’s the part that grabbed [...]
I’ve recently been emphasizing, in print and in speaking engagements, that for any organization that wants to gain control of the drafting process, a necessary first step is to adopt a house style for contract drafting. (I know of three law firms that are currently working on adopting a house style.) What should such a house style [...]
The current issue of The Lawyers Weekly, the Canadian periodical, contains a nifty article on how to make contract drafting a commodity. Yours truly is featured prominently. Click here to go to a pdf copy. Any observations?
I’ve recently seen and heard references to companies offshoring the task of drafting contracts. For example, this article in today’s London Times says that Rio Tinto has hired a team of Indian lawyers “to work for it on tasks such as reviewing documents and drafting contracts.” If that means having your offshore lawyers handle hundreds [...]
It seems as if every couple of months I find out about another company that’s somehow involved in the contract-automation business. Yesterday I learned about Drawloop. It offers general document-automation services, including automation of routine sales contracts, presumably using mail-merge type functionality. That seems like a sensible niche, one that offers high volume without the complications [...]
For the heck of it, every so often I search “contract drafting” on Twitter. A few times I’ve been pleasantly surprised to spot a mention of my book. Once someone who evidently was then in one of my seminars tweeted that the seminar wasn’t as much fun as her dinner with an old friend the [...]
Legal OnRamp, the online forum for in-house counsel and invited outside lawyers and vendors, has announced the “FMC Technologies 1° Law Litigation Value Challenge.” It’s a beauty contest for law firms interested in doing FMC’s litigation work. I suppose what distinguishes it from the run-of-the-mill beauty contest is that Legal OnRamp represents a particulary public [...]
It’s commonplace for performance to begin before a contract has been signed, with the contract being signed once all necessary approvals have been secured. MSCD 1.32 recommends that in such contexts, you put in the introductory clause the date the contract is signed, rather than the date performance began. (That assumes you’re using a date [...]
At my Osgoode Professional Development workshop in Toronto last week, a participant helpfully mentioned a recent English case in which the court held that transferring the signature on an incomplete draft deed or contract to a final version wouldn’t be effective if the changes made were so significant that the final version was arguably a [...]
