Blog

“Is/Are Subject To” as an Example of a Passive-Type Policy

Here’s an example of what MSCD calls “passive-type policies”: Interest is payable at a rate of 8% per year. Here’s part of what MSCD 3.244 has to say about passive-type policies: Some policies are characterized by adjectives such as exercisable and payable and have a structure that’s analogous to the passive voice. This manual refers to such policies as “passive-type policies.” Passive-type policies have … Read More

Don’t Use “Personnel” in Contracts

Recently I encountered the word personnel in a contract. Hmm, how does personnel relate to employees? I asked my usual employment-law resources and they replied that personnel and employees mean the same thing, although personnel is perhaps the fancier option. But in my world, which I suspect is a narrower, more cramped, darker world than theirs, the sensible meaning attributed to words … Read More

Hey, Law Students! Here’s an Idea for a Law-Review Note

Law reviews—student-run journals that operate out of law schools—are odd institutions that have come in for a good deal of criticism. (I added to that with this 2015 post.) But one potentially worthwhile feature of law reviews is that they provide students with the opportunity to write a “note” and have it selected to be published. But it can be challenging to … Read More

A Reminder that “And” and “Or” Matter

Thanks to @legalwritinged, I learned about this post on Porter Wright’s blog Employment Law Reporter. It’s about the recent opinion of the U.S. District Court for the Northern District of Ohio in Alloy Bellows & Precision Welding, Inc. v. Jason Cole, No. 1:15CV494, 2016 WL 1618108, at *1 (N.D. Ohio Apr. 22, 2016) (PDF here). The Opinion Cole worked for … Read More

Language of Belief RIP

I regret to report the sudden and unexpected demise of one of the categories of contract language, namely language of belief. Well, I don’t really regret it. In fact, I’m relieved. Language of belief was a scrawny, frail creature who stood around not doing much of anything other than picking its nose, gazing into space, and getting in the way … Read More

“Completely”: Another Example of Rhetorical Emphasis

Although way back in 2008 I wrote about complete and accurate (here), yesterday I realized that I hadn’t written about use of completely as rhetorical emphasis. So I exhumed the following corpses from EDGAR: In addition, all financial data must be completely and accurately recorded in compliance with applicable law and Invesco’s accounting policies and procedures. … the Executive agrees … Read More

A New Case on Expressing Conditions and the Role of “Shall”

From reader Ben King, general counsel of Jive Communications, I learned about a 2016 opinion of the Supreme Court of Utah, Mind & Motion Utah Investments, LLC v. Celtic Bank Corp., 2016 UT 6, 367 P.3d 994 (PDF here). The moral of this particular story is that if you want a contract provision to be interpreted as a condition, you had better make sure it’s worded … Read More

“Workmanlike”: A Case Study in Mishandling Vagueness

The word workmanlike features in a lot of contracts on EDGAR, particularly loan agreements and landlord-tenant contracts. Here are three random examples: Borrower shall only use contractors … who generally have a good reputation for completing their work in a neat, prompt and workmanlike manner … All Tenant Improvements shall be done at Tenant’s full cost, expense and risk, shall comply … Read More

A Further Note on “During the Term of This Agreement”

In MSCD, as well as in this 2007 post, I say that the phrase during the term of this agreement is usually redundant. I use the following example: During the term of this agreement, the [The] Company shall pay Jones an automobile expense allowance of $1,000 per month, grossed up for income tax purposes, and reimburse Jones for all gasoline … Read More