Tag: effective drafting

Irrational, arbitrary, illogical

The literal reading of a formula for rent increases was irrational, arbitrary or illogical. But what were the court’s powers to override an express clause in the lease? The purpose of the clause was to increase the rent each year by a cost of living rate (the retail price index).

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Poor writing is why you can’t understand contracts

‘There are two things wrong with almost all legal writing. One is its style. The other is its content’ – Fred Rodell (1936). Despite having nearly 100 years to improve, legal writing is still awful. Researchers in cognitive science from MIT (Massachusetts Institute of Technology, USA) have analysed the major

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How not to create your subcontract

During my decades reviewing construction contracts, often the worst ones are subcontracts. These are the three ways in which they are abused. Dumping on your subcontractor Main contractors (through their contract terms) are guilty of some of these sins: making their subcontractors sign up to all sorts of nasties that

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Clarity in crisis

If your contractual relationship starts to deterioriate and it feels like a dispute is brewing, you may be able to rely on your contract. A good contract will provide a clear roadmap for how you can resolve any niggles, rows or disputes, while trying to keep your relationship from failing

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Subcontract flow-down

Subcontractor agreements (subcontracts) are often intended to be back-to-back with the main contract but this can lead to ambiguity and inconsistency for a subcontractor. What happens when the contractor’s works contract sets out a higher quality standard than that in the subcontractor’s contract? Back-to-Back Many subcontracts include clunky attempts to

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Copying clauses on concurrent delay

If you understand the principles on concurrent delay then you might also be aware of the debate whether the contract should define concurrent delay and pass its risk to the contractor. In North Midland v Cyden, the parties amended the standard JCT contract to require: the contractor to make reasonable

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Everyone prefers simplicity

Christopher Trudeau (and Christine Cawthorne) have repeated their 2010 study of preferences in legal documents and communication to find out how lawyers can better serve their clients and the wider community. The conclusions? Their 2017 report says: clear legal communication is vitally important legal information is very widespread (with 80%

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Hoorah for clauses

Hoorah! Not for Santa clauses (!)… instead I am referring to the means contact writers have for splitting the huge amount of data in a construction contract into manageable chunks. From studies by Miller in the fifties, it has long been known that we have a limited span of working

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Delay damages: £1 or £1m per day?

Once you have realised the truth behind the pesky myths surrounding liquidated damages, you will need to consider what level of liquidated damages should go into your contracts. There are a number of options: If you state £nil, then the client cannot recover any of its losses for late completion

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Avoid disputes with wedding cakes

Having considered the importance of clarity and records in avoiding disputes (both easier said than done), Susannah’s last post reviews the role of contract clauses that set out a series of dispute resolution options. These are tiered procedures, hence their nickname ‘wedding cake clauses’. Although you cannot avoid a dispute

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