News & Analysis as of

Contract Terms Contract Interpretation Ambiguous

Whitman Legal Solutions, LLC

Why People “May” Incorrectly Use “Shall,” “Must,” and “Will” Even Though They “Should” Know Better

Contracts, real estate leases, and other legal documents also often include provisions that are mandatory (like obligatos) and/or are optional (like ossias). Terms such as "shall," "must," "will," "may," and "should” each...more

Morgan Lewis - Tech & Sourcing

Take Care to Avoid Ambiguity When Using Template Liability Provisions

It is often appealing for businesses that are under pressure to get contracts signed to turn to template documents. While these templates can be very convenient, it is imperative, especially with regard to liability...more

Gray Reed

Oops! Sellers Didn’t Read The Mineral Deed Before Signing

Gray Reed on

Precious little legal analysis is required to grasp the lesson from Springbok Royalty Partners v. Cook.  No mode or manner of legal gymnastics is likely to save parties from the legal effect of a contract they didn’t bother...more

Jones & Keller, P.C.

The Importance of Contract Language

Jones & Keller, P.C. on

Several years ago, unclear, ambiguous, and inconsistent contract language (not to mention some bizarre lawyer shenanigans) cost the owner of the Los Angeles Dodgers one-half of the team in divorce proceedings...more

McGuireWoods LLP

6th Circuit Rules Nonsensical Contract Clause Does Not Equate to Ambiguity

McGuireWoods LLP on

In Hall v. Rag-O-Rama, LLC, the U.S. Court of Appeals for the 6th Circuit affirmed the decision of a district court that rejected Sally Hall’s breach of contract claims based on a poorly worded contract provision. The 6th...more

Gray Reed

Texas Supreme Court Deems Continuous Development Clause Ambiguous

Gray Reed on

In Endeavor Energy Resources, L.P. v. Energen Resources Corp. et al. the Supreme Court of Texas construed a continuous development clause in an oil and gas lease covering 11,300 acres in Howard County. After the primary term,...more

Jaburg Wilk

That’s Ambiguous – No It’s Not

Jaburg Wilk on

As hard as real estate agents, title companies, attorneys, and anybody else who drafts contracts, may strive for perfection in their drafting, it is not unusual for the finished product to include a provision that is...more

Gray Reed

Louisiana Operator’s Bad Faith Does Not Preclude Recovery

Gray Reed on

Under Louisiana law, does the operator’s bad faith preclude recovery for the non-operator’s breach of a joint operating agreement if the operator caused the non-operator to breach the JOA but did not itself breach?...more

Morris James LLP

Delaware Superior Court Defines “Including”

Morris James LLP on

Triumph Aerostructures-Tulsa LLC v. Spirit Aerosystems Inc., C.A. N17C-11-262 MMJ CCLD (August 8, 2018) - Contracts often use the word “including” as part of a definition of a term. But is that to limit or enlarge what...more

Gray Reed

NPRI Reservation Survives Rule Against Perpetuities

Gray Reed on

Recall the Battle of the Bastards: The heroic Lady Sansa and the duplicitous Lord Baelish gallop over the hill to save the foolish Jon Snow from the heinous Ramsey Bolton. In similar fashion, but without the malnourished...more

Gray Reed

Option Contract Ruling Reversed by Texas Supreme Court.

Gray Reed on

North Shore Energy v. Harkins interpreted an Option Agreement between landowners and a producer over a 400 acre tract. In football they would say the Texas Supreme Court pancaked the plaintiff. In the law, some would call it...more

Zelle  LLP

Contra Proferentem Doesn’t Always Mean ‘Against the Insurer’

Zelle LLP on

Despite best efforts, ambiguities are inevitable in contracts. The doctrine of contra proferentem shifts the risk of ambiguity to the party that drafted the contract. The doctrine is frequently applied against insurers where...more

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