Regular readers will know that it has long been a hobby of mine to collect weird ways that drafters find to say may. But at some point, your cross the line and it’s no longer fun and games. Instead, you confront the horror. Friends, we’ve reached that point. Behold the following: The Grantee is hereby […]

In MSCD 3.47, I say the following: For purposes of business contracts, as opposed to statutes, it’s unlikely that anyone could successfully argue that instead of expressing an obligation, a particular shall is “discretionary” and means may or should. Well, courtesy of @mrsalzwedel I learned of PacifiCorp v. Sempra Energy Trading Corp., No. CIV-04-0701 (E.D. Cal. […]

Here’s what I said in this 2014 post: [I]f a party that is subject to a condition is in a position to act as if the condition has been satisfied even if it in fact hasn’t been satisfied, should the issue in question instead be stated as an obligation? My answer was yes, it should. […]

In this 2011 post and this 2009 post I explored using license-granting language instead of language of discretion. Here’s what MSCD says about this: Granting language is analogous to language of discretion. Consider [1-4], [1-4a], and [1-4b]. They all convey the same meaning, but granting language using the noun license, as in [1-4], offers two […]

Readers with a long memory will remember this 2014 post about a “quick reference” analysis of the categories of contract language prepared by a seminar participant. Well, after almost three years, I’ve come up with my own version, or at least a first draft of it. Go here for a PDF. (The “Reference” column is […]

Via @thecontractsguy I learned of this article in the National Law Review. It discusses East Texas Copy Systems, Inc. v. Player, No. 06-16-00035-CV, 2016 WL 6638865, at *1 (Tex. App. Nov. 10, 2016), an opinion of the Texas Court of Appeals (opinion here). Here’s what happened: An individual by the name of Jason Player sold his business […]

Table 4 in MSCD lists a bunch of suboptimal ways of saying may. In the past three years I’ve identified others; see here and here. Today, I’m proud to offer you yet another: is allowed to and its variants! Here are three examples: … and in the absence of any such indication, the Holder shall be […]

Consider the following sentence: The Equipment will comply with the Specifications. What category of contract language is it? According to my categories-of-contract-language analysis, use of will would make it language of policy with respect to a contingent future event. But language of policy is only for the ground rules of a contract—stuff that applies, or […]

Here, from EDGAR, are instances of obligations being referred to as irrevocable: “Reimbursement Obligation” means the absolute, unconditional, and irrevocable obligation of the Borrower to reimburse the Issuing Bank for any drawing honored by the Issuing Bank under a Letter of Credit. The obligation of Borrower to make payments hereunder and to observe and perform […]