TreatiseTreatise

Working with Contracts: What Law School Doesn't Teach You
(2nd Edition)

 by Charles M. Fox, Charles M Fox
 
 Copyright: 2008

 Product Details >> 

Product Details

  • ISBN Number: 9781402410604
  • Page Count: 334
  • Number of Volumes: 1
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  • The purchase of PLI titles may include Basic Upkeep Service, whereby
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Working with Contracts should become a bible for. . . associates in large corporate firms because it offers the reader both basic and more advanced drafting techniques and concepts. The conscientious reader will be drawn into the subject matter and may likely be surprised that such potentially complex, and perhaps dull, topics could be so inspiring.” 
—New York Law Journal

”[Working with Contracts is] highly recommended and. . . is a pretty good bargain.’"
—Dennis Kennedy, Information Technology Transactional Lawyer and member of the ABA Law Practice Management Section’s Council

”[Working with Contracts is an] excellent book.”
—Susan J. Irion, Director of Professional Development, DLA Piper, Chicago


PLI’s Working with Contracts provides you with the practical legal, business, and technical knowledge you need to grasp the nuts and bolts of transactions and draft customized agreements that meet clients’ goals.

This highly readable, step-by-step handbook enables you to fully understand how contract provisions work and are used to craft effective contracts; adapt relevant and reliable drafting precedents to save time and trouble; avoid drafting errors, omissions, and ambiguities that jeopardize agreements; include and coordinate requirements that ensure contracts are effective; make contracts more user-friendly by inserting widely accepted formal terms; build into contracts the requisite flexibility without compromising precision; review and interpret contracts for due diligence and other business purposes; and master accounting basics and accurately express quantitative ideas in contracts.
 
Working with Contracts features important coverage of contract covenants, breach of covenants, due diligence conditions, organization of the agreement, credit-related provisions, acquisition-related provisions, the integration clause, and indemnification.

Periodically updated, Working with Contracts: What Law School Doesn’t Teach You is a crucial guide for inexperienced transactional lawyers, a useful refresher for experienced transactional lawyers, a handy reference for general practitioners, and an important teaching tool for law firms.

  Table of Contents
Chapter 1: Introduction
  • § 1:1 : What Law School Doesn’t Teach You1
  • § 1:2 : The Role of Contracts3
  • § 1:3 : Contracts: A Unique Type of Writing4
  • § 1:4 : The Scope of This Book5
Chapter 2: Building Blocks: The Basics
  • § 2:1 : Introduction8
  • § 2:2 : Representations and Warranties: The Snapshot9
    • § 2:2.1 : Representations: A Simple Case9
    • § 2:2.2 : Smoking Out the Facts10
    • § 2:2.3 : Allocation of Risk11
    • § 2:2.4 : Categories of Representations11
      • [A] : Representations as to the Contract Itself11
      • [B] : Subject Matter Representations12
      • [C] : Representations about the Parties12
      • [D] : Exceptions13
    • § 2:2.5 : Representation “Bring-downs”14
    • § 2:2.6 : Survival of Representations15
  • § 2:3 : Covenants16
    • § 2:3.1 : A Simple Case16
    • § 2:3.2 : Credit-related Covenants17
    • § 2:3.3 : Exceptions18
    • § 2:3.4 : Types of Exceptions19
    • § 2:3.5 : Remedies for Breach of a Covenant19
  • § 2:4 : Conditions Precedent20
    • § 2:4.1 : Timing Issues20
    • § 2:4.2 : Conditions as “Outs”21
    • § 2:4.3 : Common Conditions22
    • § 2:4.4 : When Are Conditions Satisfied?23
  • § 2:5 : Remedial Provisions24
    • § 2:5.1 : Triggering Events24
    • § 2:5.2 : Types of Remedies26
      • [A] : Termination26
      • [B] : Acceleration26
      • [C] : Indemnification27
      • [D] : Liquidated Damages28
    • § 2:5.3 : Softening Remedies28
  • § 2:6 : Definitions29
    • § 2:6.1 : Where Do Definitions Appear?30
    • § 2:6.2 : The Purpose of Definitions30
    • § 2:6.3 : What to Call Things31
    • § 2:6.4 : Nesting Definitions32
    • § 2:6.5 : Avoid Substantive Requirements in Definitions33
Chapter 3: The Lawyer’s Functions
  • § 3:1 : The Contract Formation Process: A Breeding Ground for Issues35
  • § 3:2 : Identifying Issues37
  • § 3:3 : The Lawyer as the Client’s Guide38
  • § 3:4 : The Drafting Process39
    • § 3:4.1 : Getting Started39
    • § 3:4.2 : Drafting the Contract41
    • § 3:4.3 : Use of Precedent42
    • § 3:4.4 : Marking up a Precedent44
    • § 3:4.5 : Final Steps in Producing a First Draft46
    • § 3:4.6 : The Role of the Non-Drafting Lawyer48
  • § 3:5 : The Lawyer as Facilitator50
    • § 3:5.1 : Representations and Warranties51
      • [A] : Legal Issues51
      • [B] : Ensuring Proper Review by the Client52
      • [C] : Preparing Disclosure Schedules52
    • § 3:5.2 : Covenants55
    • § 3:5.3 : Closing Conditions56
      • [A] : Subjective Closing Conditions56
      • [B] : Due Diligence Conditions59
      • [C] : Third Party Deliveries61
      • [D] : Legal Opinions62
      • [E] : Satisfying the Closing Conditions63
      • [F] : Closing Certificates65
Chapter 4: Principles of Effective Drafting
  • § 4:1 : Introduction67
  • § 4:2 : Precision69
    • § 4:2.1 : Use of Antecedents71
    • § 4:2.2 : Time References71
    • § 4:2.3 : Legalese73
    • § 4:2.4 : Conveyance Provisions74
  • § 4:3 : Simplicity74
    • § 4:3.1 : Keep Sentences Short75
    • § 4:3.2 : Use the Active Voice76
    • § 4:3.3 : Delete Unnecessary Words76
    • § 4:3.4 : Accretive Drafting77
  • § 4:4 : Consistency: Learn to Love the Hobgoblin79
  • § 4:5 : Clarity81
Chapter 5: Drafting Techniques
  • § 5:1 : Introduction84
  • § 5:2 : Softening the Edges84
    • § 5:2.1 : Materiality/Material Adverse Effect85
    • § 5:2.2 : Reasonableness88
    • § 5:2.3 : Consent Not to be Unreasonably Withheld89
    • § 5:2.4 : Best/Reasonable Efforts90
    • § 5:2.5 : To the Best of Its Knowledge91
    • § 5:2.6 : Substantially in the Form Of92
    • § 5:2.7 : To the Extent Permitted by Law92
    • § 5:2.8 : Promptly93
    • § 5:2.9 : In Form and Substance Satisfactory93
    • § 5:2.10 : Substantially All/Substantial Portion94
    • § 5:2.11 : In the Ordinary Course of Business94
    • § 5:2.12 : Consistent with Past Practice95
    • § 5:2.13 : Not More Restrictive95
    • § 5:2.14 : Would vs. Could: Levels of Probability96
  • § 5:3 : Trumping Provisions97
    • § 5:3.1 : Provisos97
    • § 5:3.2 : Notwithstanding Anything to the Contrary98
    • § 5:3.3 : Except as Otherwise Provided99
    • § 5:3.4 : Without Limiting the Generality of the Foregoing100
    • § 5:3.5 : Inconsistency Among Agreements100
  • § 5:4 : Accounting Terms/Terms of Measurement101
    • § 5:4.1 : Formulas101
    • § 5:4.2 : Floors and Ceilings103
    • § 5:4.3 : On a Consolidated Basis103
    • § 5:4.4 : On a Consolidating Basis104
    • § 5:4.5 : Company and Its Subsidiaries, Taken as a Whole104
    • § 5:4.6 : Frozen GAAP104
    • § 5:4.7 : Outstanding105
    • § 5:4.8 : Per Annum105
    • § 5:4.9 : Absent Manifest Error106
    • § 5:4.10 : In Arrears/In Advance106
  • § 5:5 : Terms of Inclusion and Exclusion107
    • § 5:5.1 : Make Exceptions Consistent108
    • § 5:5.2 : Specific Exclusions to Avoid Doubt108
    • § 5:5.3 : Unnecessary Exceptions109
    • § 5:5.4 : Including Without Limitation110
    • § 5:5.5 : Disorganized Exceptions111
  • § 5:6 : Miscellaneous Drafting Issues112
    • § 5:6.1 : Incorporation by Reference112
    • § 5:6.2 : On an Arm’s-length Basis113
    • § 5:6.3 : As Determined by the Board of Directors113
    • § 5:6.4 : Upon the Occurrence and During the Continuance of an Event of Default114
    • § 5:6.5 : Gross Negligence and Willful Misconduct114
    • § 5:6.6 : From Time to Time116
    • § 5:6.7 : As the Case May Be116
    • § 5:6.8 : Respectively116
    • § 5:6.9 : For a Party’s Account116
Chapter 6: Review and Interpretation of Contracts
  • § 6:1 : Introduction118
  • § 6:2 : Basic Principles118
    • § 6:2.1 : Look at the Right Agreement118
    • § 6:2.2 : Scope of the Review120
    • § 6:2.3 : Look at the Right Provisions and Everything Else120
    • § 6:2.4 : Don’t Forget the Definitions121
  • § 6:3 : Review and Interpretation122
    • § 6:3.1 : The Imperfection of Contracts122
    • § 6:3.2 : The Life of Contracts123
    • § 6:3.3 : Timing Issues123
    • § 6:3.4 : Levels of Review125
      • [A] : Types of Issues125
      • [B] : What Is at Stake?126
      • [C] : Degrees of Certainty128
  • § 6:4 : Due Diligence130
    • § 6:4.1 : Scope of the Assignment130
    • § 6:4.2 : Due Diligence of Seller’s Contractsin an Asset Acquisition131
    • § 6:4.3 : Due Diligence of Purchaser’s Contracts in an Asset Acquisition133
    • § 6:4.4 : Due Diligence of a Target’s Contracts in a Stock Acquisition134
    • § 6:4.5 : Due Diligence of a Seller’s Contracts in a Stock Acquisition136
    • § 6:4.6 : Due Diligence of a Purchaser’s Contracts in a Stock Acquisition137
    • § 6:4.7 : Due Diligence of the Contracts of an Issuer of Stock139
    • § 6:4.8 : Due Diligence of the Contracts of a Borrower in an Unsecured Loan or Debt Issuance Transaction140
    • § 6:4.9 : Due Diligence of the Contracts of a Borrower in a Secured Loan or Debt Issuance Transaction141
Chapter 7: Amendments, Waivers and Consents
  • § 7:1 : The Amendment Process143
  • § 7:2 : Amendments, Waivers and Consents: Different Tools for Different Tasks144
  • § 7:3 : Amendment Techniques145
  • § 7:4 : Keeping Track148
  • § 7:5 : Satisfying Amendment Requirements148
  • § 7:6 : Amendments to Assigned Contracts150
Chapter 8: Form and Formalities
  • § 8:1 : Introduction151
  • § 8:2 : Legal Requirements153
    • § 8:2.1 : Execution153
      • [A] : Power of Attorney154
      • [B] : Signature Blocks155
      • [C] : Original or Not?156
    • § 8:2.2 : Delivery157
    • § 8:2.3 : Notarization159
    • § 8:2.4 : Corporate Seals159
    • § 8:2.5 : Foreign Agreements159
  • § 8:3 : Form: the Contract’s “Package”159
    • § 8:3.1 : Letter Agreements160
    • § 8:3.2 : Title161
    • § 8:3.3 : Cover Page161
    • § 8:3.4 : Table of Contents161
    • § 8:3.5 : Date162
    • § 8:3.6 : Whereas Clauses164
    • § 8:3.7 : Headings164
    • § 8:3.8 : Section Numbering165
    • § 8:3.9 : Organization of the Agreement165
  • § 8:4 : Aesthetics166
    • § 8:4.1 : Font166
    • § 8:4.2 : Spacing167
    • § 8:4.3 : Margins167
    • § 8:4.4 : Paragraphs167
Chapter 9: Building Blocks in Detail
  • § 9:1 : Introduction171
  • § 9:2 : Enforceability Representations171
    • § 9:2.1 : Organization172
    • § 9:2.2 : Power and Authority172
    • § 9:2.3 : Necessary Action173
    • § 9:2.4 : Due Execution and Delivery174
    • § 9:2.5 : No Conflict174
    • § 9:2.6 : Governmental Approvals175
    • § 9:2.7 : Enforceability176
  • § 9:3 : Credit-related Provisions177
    • § 9:3.1 : Representations181
      • [A] : Financial Statements181
      • [B] : Projections182
      • [C] : Material Adverse Change183
      • [D] : Litigation183
      • [E] : Compliance with Law185
      • [F] : Payment of Taxes185
      • [G] : True and Complete Disclosure186
      • [H] : Other Representations186
    • § 9:3.2 : Affirmative Covenants186
      • [A] : Reporting Covenants186
      • [B] : Books and Records191
      • [C] : Inspections191
      • [D] : Compliance with Law192
      • [E] : Maintenance of Insurance192
      • [F] : Payment of Taxes194
      • [G] : Corporate Existence194
      • [H] : Payment of Claims195
    • § 9:3.3 : Negative Covenants195
      • [A] : Debt196
      • [B] : Liens200
      • [C] : Asset Sales204
      • [D] : Restricted Payments208
      • [E] : Investments209
      • [F] : Transactions with Affiliates212
      • [G] : Payment Restrictions Affecting Subsidiaries213
      • [H] : Amendments to Other Documents215
      • [I] : Mergers215
      • [J] : Capital Expenditures216
      • [K] : Financial Covenants216
    • § 9:3.4 : Events of Default218
  • § 9:4 : Acquisition-related Provisions220
    • § 9:4.1 : Representations221
      • [A] : The Purpose of Representations221
      • [B] : Representations and the Disclosure Process222
      • [C] : Timing of Representations223
      • [D] : Representation Qualifiers223
      • [E] : Corporate Existence, Power and Authority225
      • [F] : Consents; No Violations226
      • [G] : Financial Statements; No Undisclosed Liabilities226
      • [H] : Material Adverse Change227
      • [I] : Books and Records227
      • [J] : Title to Assets228
      • [K] : Capitalization228
      • [L] : Litigation, Full Disclosure, Etc.229
      • [M] : Other Representations230
    • § 9:4.2 : Covenants231
      • [A] : Interim Operations of the Target231
      • [B] : Actions Relating to the Closing233
      • [C] : Notification of Certain Matters233
      • [D] : Post-closing Covenants234
    • § 9:4.3 : Conditions Precedent: Chickens, Eggs and Big Fat Moments in Time235
      • [A] : Payment and Transfer237
      • [B] : Legal Impediments237
      • [C] : Litigation238
      • [D] : Representations238
      • [E] : Performance of Covenants239
      • [F] : Officer’s Certificate239
      • [G] : Financing240
      • [H] : Legal Opinions240
    • § 9:4.4 : Remedies241
      • [A] : Termination241
      • [B] : Indemnification242
Chapter 10: Miscellaneous Provisions; Miscellaneous Thoughts
  • § 10:1 : Introduction245
  • § 10:2 : The “Miscellaneous” Sections246
    • § 10:2.1 : Choice of Law246
    • § 10:2.2 : Consent to Jurisdiction248
    • § 10:2.3 : Waiver of Jury Trial249
    • § 10:2.4 : Counterparts249
    • § 10:2.5 : Headings250
    • § 10:2.6 : Severability250
    • § 10:2.7 : Integration Clause250
    • § 10:2.8 : No Implied Waivers251
    • § 10:2.9 : Amendments251
    • § 10:2.10 : Assignment252
      • [A] : Novation252
      • [B] : Absolute Assignment of Rights253
      • [C] : Collateral Assignment of Rights253
    • § 10:2.11 : Costs and Expenses254
    • § 10:2.12 : Indemnification254
    • § 10:2.13 : Further Assurances255
  • § 10:3 : Miscellany256
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