Effective Contract Drafting: A Subversive Manifesto
It's always best to say what you mean as clearly and as simply as you can, right?

Maybe.

If you’re writing the "risk factors" for an offering document, yes, you should seek to be clear. (This statement is aspirational. Most securities lawyers do strive to flag pertinent risks, but actual practice finds them burying meaningful disclosure within HYSTERICAL ALL CAPS BOILERPLATE DESIGNED TO EXHAUST YOU AND GET YOU TO SKIP RIGHT OVER IT.)

Ambiguity, however, is indispensable to the drafter of commercial contracts.

The case for precision and clarity is always forceful: avoid disputes later by spelling things out today; write as if the parties doing the deal won't later be around, or will have forgotten themselves, or will have joined the dark side. Trust is fostered, commerce enhanced, by plain dealing. Everyone loves a shrewd negotiator, but he who speaks un-plainly gets the reputation of a sharp dealer.

What about, however, material points on which the parties will not agree? Either because they do not have the time, or do not wish to risk what they regard as the more essential deal?

Here are opportunities for skilled draftspersons to practice at being elusive. Words are chosen -- sometimes artfully chosen -- to preserve for each party a different argument on the same point. An issue may be flagged expressly for the sake of not resolving it.

If I'm making it sound like there is a secret, select cadre of lawyers who participate in such willful obfuscation, I shouldn't. All good business lawyers participate. The more adept a lawyer is at employing such techniques, and judging when they are needed, the more effective that lawyer is as a deal maker.
Ilike
1 Comments on "Effective Contract Drafting: A Subversive Manifesto"
Logo for Contracked™  Contract Management
Legal terms should be dynamic and not static, Start managing those! Good Blog!
Posted by Contracked™ Contract Management on Jan, 24 at 12:56 PM
Add a comment...
Login or register to comment!
Or, sign in with a Facebook account ...
Login With Facebook
Logo for William Carleton
43,453 Points
Follow
Member since Oct, 05, 2009
William Carleton is a member of McNaul Ebel Nawrot & Helgren PLLC. He works with founders, investors, executives, and board directors of startups and emerging tech companies.
http://www.wac6.com
Recent Posts
Tags
angel financing bootstrapping burn rates choice of entity crowdsourcing emerging companies equity incentives executive compensation exit strategies financings founders licensing liquidation preferences maps & traffic participation rights reg d sales cycles social media startups terms of service twitter use of lawyers vcs venture venture capital web/tech weblogs
Archives
March 2009 (2)
April 2009 (5)
May 2009 (2)
June 2009 (2)
July 2009 (3)
August 2009 (6)
September 2009 (7)
October 2009 (5)
November 2009 (13)
December 2009 (5)
January 2010 (10)
February 2010 (9)
March 2010 (4)