Categories of Contract Language

“Look To”

This post on ContractsProf Blog by Myanna Dellinger begins as follows: If a recording artist enters into a personal services agreement with a record company that, among other things, contains a promise that the artist will “look solely to [a corporate version of the music band] for the payment of my fees and/or royalties … and will not assert any … Read More

Whether an “Unless” Clause Is a Condition Precedent or a Condition Subsequent

In MSCD 3.248, I recommend that you not use in a contract the terms of art condition precedent and condition subsequent: In a contract, use the term condition rather than condition precedent, which conveys the same meaning but adds an unnecessarily legalistic flavor. You should never need to use condition subsequent, meaning something that, if it occurs, would bring something else to an … Read More

“May” and “Might” and Degrees of Possibility

Regular readers of this blog will know that I’m, um, fallible. A recent post offered a brilliant example of that. In this comment, reader John Dorsey mentioned that might conveys a lesser degree of possibility than does may. I expressed doubt about that. John responded by pointing to one of my blog posts. It quotes The Cambridge Grammar of the English Language offering exactly that … Read More

“Representations,” “Warranties,” and the Delaware Superior Court

Last week Glenn West—this Glenn West—told me about Pivotal Payments Direct Corp. v. Planet Payment, Inc., No. CVN15C02059 EMD CCLD, 2015 WL 9595285 (Del. Super. Dec. 29, 2015) (PDF here). It involves representations. And warranties. He expected that I would freak. I can see him cackling and rubbing his hands together. Anyone who has read this blog for a while knows that those terms can get … Read More

Which Category of Contract Language Works for This Sentence?

Consider the following: The User may monitor its Service account via the “Acme Portal,” which is available at www.acme.com/accounts. It’s phrased as language of discretion, but I don’t think that makes sense. Acme isn’t saying, “We’re allowing you to access your account in this manner.” Instead, the idea is that anyone who has an account can access it in that manner. … Read More

How to Express Termination with Prior Notice

Consider this (emphasis added), recovered from the EDGAR tar pits: If … , Ultimus may terminate this Agreement upon 60 days’ prior written notice [to the Trust]. Although that formulation is standard, I suggest it doesn’t make sense. In that case, termination wouldn’t happen when Ultimus—let’s take a moment to appreciate that name—notifies whomever it is. Instead, it would happen 60 … Read More

When to Use “Hereby Appoints”

Well, I guess it’s language of performance’s turn in the spotlight, since this is my third post on the subject today. Below is a sentence from EDGAR that uses language of performance to appoint an agent. It’s following by a version using language of obligation. The Fund hereby appoints the Agent as its “Investor Servicing Agent” on the terms and … Read More

Verbs That Don’t Work in Language of Performance

Consider use of the verb pay in the following extract from EDGAR: In consideration for the conveyance of the Assets to Buyer, Buyer hereby pays to Seller consideration (the “Purchase Price”) … You can’t pay someone just by saying so. As linguists would say, pay cannot be used performatively. In other words, pay doesn’t work in language of performance. Way more verbs … Read More

Why I Use “Hereby” in Language of Performance

I recommend saying Acme hereby grants the License to Smith, not Acme grants the License to Smith, with hereby omitted. Why? I’ll let The Cambridge Grammar of the English Language 860 n.3 (2002) explain for me: Clauses like I promise to return the key and I order you to leave are ambiguous, having also less salient interpretations in which they are statements … Read More

No Naked Facts!

Reader A. Wright Burke has a nifty turn of phrase. Who can forget his nitcaps™. (“Initial capitals,” guys!) He recently came up with “naked facts.” Nice phrase. But I suggest that the concept it stands for doesn’t work. It’s instructive to consider why that’s the case. A naked fact is a statement of fact that isn’t preceded by a reference … Read More