We Agree - accelerated contract drafting

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• Published: Drafting contracts
• • Part I - Contract drafting: matters of style
  • 1 - General drafting principles
    • 1.1 - Plain English: simple and clear
      • (a) - Short sentences
      • (b) - Keep subject and verb together - left-right principle
      • (c) - Use the active tense and personalise sentences
      • (d) - Delete unnecessary words
    • 1.2 - Accuracy
      • (a) - Think analytically and draft ‘MECE’
      • (b) - Examples of improved accuracy
    • 1.3 - Consistency
    • 1.4 - Vagueness and ambiguity
      • (a) - 'Avoid vague terms'
        • (i) - Vague terms: reasonable
        • (ii) - Vague terms: material
        • (iii) - Vague terms: substantially
        • (iv) - Vague terms: without undue delay
      • (b) - Ambiguity
  • 2 - Matters of style and legal culture
    • 2.1 - Being exhaustive (US-style) or Conceptual (European style)
    • 2.2 - Some considerations on contract interpretation
      • (a) - Legal cultures and determinative interpretation factors
      • (b) - Statutory guidelines on contract interpretation
    • 2.3 - Degrees of binding and non-binding commitments
  • 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
      • (a) - The contract title
      • (b) - Definition of 'this Agreement'
      • (c) - Date
      • (d) - Made or entered into
      • (e) - By, between and amongst
      • (f) - The contracting parties
      • (g) - The parties defined
      • (h) - Preamble
      • (i) - Words of 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
    • 4.1 - Cross references
    • 4.2 - Schedules, annexes and exhibits
  • 5 - Presentation: the look and feel
    • 5.1 - General matters: fonts, spacing, alignment and margins
      • (a) - About fonts: nature and legibility
        • (i) - Letter families
        • (ii) - Characteristics: Helvetica, Times New Roman and Garamond
      • (b) - About spacing, alignment and margins: readability
        • (i) - Line spacing
        • (ii) - Alignment: justified, left aligned, right aligned
        • (iii) - Margins
    • 5.2 - Layout and numbering
      • (a) - Articles and sections
      • (b) - Numbering
      • (c) - Indentation
      • (d) - Enumerations
      • (e) - Bullet points
    • 5.3 - Headings and captions
    • 5.4 - House style rules
  • 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
      • (a) - Best practice rules on drafting numbers
      • (b) - Drafting fractions
      • (c) - Ranges of figures
      • (d) - References to dates
      • (e) - References to time
  • 7 - Definitions and contract interpretation clauses
    • 7.1 - Definitions and defined terms – best practice rules
      • (a) - Principles related to the use of defined terms in contracts
      • (b) - Principles related to the place and presentation of defined terms
      • (c) - Principles related to drafting the text of a definition
    • 7.2 - Interpretation guidelines for standard words and phrases
      • (a) - Standard words and phrases ‘defined’
      • (b) - ‘Subsidiaries’ and ‘Affiliates’
      • (c) - ‘Best endeavours’ and ‘commercially reasonable efforts’
      • (d) - ‘In the ordinary course of business’
      • (e) - An arm's length away
      • (f) - ‘To the knowledge of…’
  • 8 - Particular types of clauses
    • 8.1 - Conditions, conditional clauses and triggering events
      • (a) - General observations about conditions
      • (b) - Subject matters adjacent to conditions
      • (c) - Best practice rules on drafting conditions - intro and overview
      • (d) - Common conditions
    • 8.2 - Covenants
      • (a) - Covenants vs. conditions
      • (b) - Covenants in various contracts
      • (c) - Covenants in M&A transactions
      • (d) - Credit-facility-related covenants
      • (e) - Carve-outs and baskets: exceptions to 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
      • (a) - Limitations of liability
      • (b) - 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
      • (a) - International nature
      • (b) - Dispense with ‘…excluding its conflicts of law provisions’
      • (c) - Exclude the applicability of the Vienna Convention?
    • 8.8 - Dispute resolution provisions
      • (a) - Court or arbitration?
      • (b) - Choices of court
      • (c) - Arbitration or expert determination?
      • (d) - Arbitration institute or ad hoc arbitration?
      • (e) - Points of attention in an arbitration clause
      • (f) - Mediation, dispute boards and escalation
  • Part IV - Miscellaneous
  • 9 - Contract assembly software
    • 9.1 - Contract assembly software generally
    • 9.2 - Advantages of contract assembly
    • 9.3 - A workflow within contract assembly applications
    • 9.4 - Implementing contract assembly
      • (a) - Leading a change to contract assembly
      • (b) - A mindmap for implementing a contract assembly solution
  • 10 - Drafting certain specific types of legal documents
    • 10.1 - Letter agreements and side letters
    • 10.2 - Amendments, supplements and addenda
    • 10.3 - Shareholder and board resolutions and powers of attorney
  • 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)

Annex 2 Document marking conventions