- The online book: Drafting Contracts
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- Published: Drafting contracts
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- Part I - Contract drafting: matters of style
- 1 - General drafting principles
- 2 - Matters of style and legal culture
- Part II - Structure and presentation of contracts
- 3 - Main contract outline
- 3.1 - Setting up an agreement
- 3.2 - Presentation styles: European vs. US style
- 3.3 - A cover page and table of contents
- 3.4 - First part of an agreement
- 3.5 - The body of the agreement
- 3.6 - Blank space after the body of the contract
- 3.7 - Signature blocks, seals and witnesses
- 3.8 - Aspects of signing, and initialling
- 3.9 - Notarisation, legalisation and apostilles
- 4 - Structuring the transaction documents
- 5 - Presentation: the look and feel
- Part III - Drafting contracts and contract clauses
- 6 - Typical drafting habits and 'legalese'
- 6.1 - Certain funny phrases
- (a) - For the avoidance of doubt, ...
- (b) - ‘…, as the case may be’
- (c) - The issue of ‘include’ and ‘without limitation’
- (d) - ‘Subject to…’
- (e) - ‘Notwithstanding…’
- (f) - ‘Except as otherwise agreed…’
- (g) - ...provided, however, that...
- (h) - ‘…from time to time’
- (i) - ‘…not to be unreasonably withheld or delayed’
- (j) - Shall be 'deemed'
- (k) - ‘Third parties’
- (l) - 'Hereby'
- (m) - ‘To the maximum extent permitted by law’
- (n) - Intentionally left blank...
- 6.2 - Do's and don'ts
- (a) - Think first: and/or
- (b) - 'In order to' (avoid explanations)
- (c) - Not shall and will (but only one of them)
- (d) - 'Said', 'such' and links
- (e) - Do not write (s) and do not use /
- (f) - ‘The same’ and ‘that certain’
- (g) - Herein, thereof, everywhereof
- (h) - 'Mutual' is a pleonasm
- (i) - Do not emphasise the unnecessary
- (j) - Use of ‘when’, ‘if’ and ‘to the extent that’
- (k) - Use of synonyms and hendiadyses
- (d) - Certain vague terms: without undue delay
- 6.3 - Numbers and formulae
- 6.1 - Certain funny phrases
- 7 - Definitions and contract interpretation clauses
- 8 - Particular types of clauses
- 8.1 - Conditions, conditional clauses and triggering events
- 8.2 - Covenants
- 8.3 - Reps and warranties
- (a) - Warranties - a quick introduction
- (b) - Statements of fact, not obligations
- (c) - Warranties, not representations and warranties
- (d) - A warranty is incorrect (or untrue), but not breached
- (e) - Smoking out the facts
- (f) - Allocation of risk
- (g) - Fitness for purpose and merchantability
- (h) - Bringing down warranties
- (i) - Survival of warranties
- (j) - Disclosures in M&A agreements
- (k) - Warranties in ordinary course business contracts
- (l) - Warranty aspects in major transactions (M&A)
- 8.4 - Limitations of liability and indemnities
- 8.5 - Confidentiality clauses
- 8.6 - Miscellaneous ('boilerplate') clauses
- (a) - Notices clause
- (b) - Amendments
- (c) - No subcontracting
- (e) - Severability
- (f) - Waivers
- (g) - Entire agreement and merger clauses
- (h) - Further assurance (duty to cooperate)
- (i) - Force majeure
- (j) - Announcements
- (k) - No termination or dissolution
- (l) - Independent contractors (‘no partnership established’)
- (m) - Time is of the essence
- (n) - No general conditions to apply
- (o) - Language (translations)
- (p) - Counterparts
- (q) - Independence of the notary
- (r) - Language
- 8.7 - Applicable law clauses
- 8.8 - Dispute resolution provisions
- Part IV - Miscellaneous
- 9 - Contract assembly software
- 10 - Drafting certain specific types of legal documents
- ANNEXES - -
- Annex1 - Ten steps to a succesful upgrade of your contracts
- (a) - Step 1: Selection of contracts and scope of contract automation
- (b) - Step 2: Establishing a best practice group
- (c) - Step 3: Collecting and stripping the model contracts and precedents
- (d) - Step 4: Prioritising the model contracts
- (e) - Step 5: Establishing the procedure and setting the agenda
- (f) - Step 6: Preparing handsome proposals for discussion
- (g) - Step 7: Discussing and establishing the model building blocks
- (h) - Step 8: Determining the company's contract house style
- (i) - Step 9: Identifying approval requirements and business access
- (j) - Step 10: Automating the documents and implementing the workflow
- Annex 2 - Document marking conventions
- Annex 3 - Contract drafting conventions (sample)
- Annex 4 - House style rules (sample)
(h) Further assurance (duty to cooperate)
The general concept of good faith, which is a core concept of EU member state laws (although not under common law jurisdictions), makes it largely superfluous to include a miscellaneous clause on ‘Further assurances'. Nevertheless, sometimes it may be helpful to provide for such ‘duty to cooperate'. For instance, the clause may support a party's request when it must prove its rights under an agreement versus a third party or if the enforcement of a party's rights requires the fulfilment of any legal or practical formality. Such clause may be as follows:
Further Assurance. Each Party shall cooperate with the other and execute such instruments or documents and take such other actions as may reasonably be requested from time to time in order to carry out, evidence or confirm their rights or obligations or as may be reasonably necessary or helpful to give effect to this Agreement.
You should be aware that if you delete the clause in a mark-up on the other party's first draft, or if the other party deletes yours, this may convey a sense of unwillingness to cooperate.