News & Analysis as of

Unenforceable Contract Terms Contract Disputes

A&O Shearman

Disputes 101 – What can’t you agree to do in your contract?

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Beware of a penalty shoot-out - The rule against penalties is rooted in public policy, aiming to prevent contractual provisions that punish the breaching party rather than protecting the interests of the innocent party. The...more

Cadwalader, Wickersham & Taft LLP

To Pay, or Not to Pay, the Co-op’s Attorneys’ Fees; That is the Question

On January 28, 2025, the New York Appellate Division, First Department refused to enforce a contractual provision that required a tenant-shareholder to pay a co-op’s attorneys’ fees in all lawsuits that the tenant-shareholder...more

Warner Norcross + Judd

Contractors Beware: Licensure Foot-faults Could Make Your Construction Contract Unenforceable

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Under the Michigan Occupational Code, residential building, maintenance and alteration contractors must be licensed to perform certain types of work. The Michigan Supreme Court held in Stokes v. Millen Roofing, 649 N.W.2d 371...more

Epstein Becker & Green

Commission Commitments: Massachusetts Appeals Court Upholds Obligation to Continue Paying Commission for the Life of the...

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Drawing from established precepts of Massachusetts law that a judge may fill in an omitted contractual term consistent with the intent of the parties, a Massachusetts Appeals Court recently affirmed a trial court’s conclusion...more

Carlton Fields

Ninth Circuit Reverses Order Denying Motion to Compel Arbitration, Concluding “Delegation Provision” Is Enforceable

Carlton Fields on

Noting the court was deciding, as a matter of first impression, “what a party must do to specifically challenge a delegation provision and what a court may consider when evaluating this challenge,” the Ninth Circuit Court of...more

Latham & Watkins LLP

Court of Appeal Rules on Enforceability of Mandatory ADR Clauses

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A recent decision reminds parties about the need to draft dispute resolution clauses that are tailored to the parties’ agreement. The Court of Appeal recently ruled that an alternative dispute resolution (ADR) clause in...more

Rosenberg Martin Greenberg LLP

Sure I Signed The Contract, But…

It is not unusual for a party to regret signing a contract. The terms “buyer’s remorse” and “seller’s remorse” would not be part of the lexicon if it was. However, with good reason, the law does not allow a party that...more

Buchalter

That’s A Goocher: SD Court Finds Enforceable Construction Contract Despite Lack of Time Component

Buchalter on

What’s a goocher?  If you saw the movie, Stand By Me, then you know exactly what I mean.  And there are times when parties to a construction contract face a goocher. ...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Indiana Supreme Court Clarifies When Liquidated Damages Become ‘Unenforceable Penalties’

On December 18, 2019, in American Consulting, Inc. d/b/a American Structurepoint, Inc. v. Hannum Wagle & Cline Engineering, Inc., et al., the Indiana Supreme Court provided clarity about when liquidated damages become...more

McAfee & Taft

Liquidated Damages in Purchase and Sale Agreements: Oklahoma

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A buyer and seller of real estate will often include a liquidated damages provision in the purchase and sale agreement as a means for stipulating the amount of damages the seller will receive in the event of a breach of the...more

Flaster Greenberg PC

Trends in Arbitration Agreements

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The New Jersey Supreme Court in late November 2019 heard oral argument in Flanzman v. Jenny Craig, Inc., 456 N.J. Super. 613 (App. Div. 2018), cert. granted, 237 N.J. 310 (2019), in which the Appellate Division boldly refused...more

Epstein Becker & Green

Court to Consider Whether California Ride Share Drivers Who Make Airport Runs Are Exempt from the Federal Arbitration Act

Epstein Becker & Green on

On November 26, 2019, San Francisco Superior Court Judge Richard B. Ulmer ruled that the Federal Arbitration Act (“FAA”) might not apply to Uber drivers who are engaged in interstate commerce while driving passengers to or...more

Foster Garvey PC

OTA & Travel Distribution Update: Sabre's previously announced acquisition runs into regulatory trouble; enforceability of...

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This week’s Update features a number of stories on important developments in the EU. Enjoy....more

Troutman Pepper Locke

Federal Arbitration Act Preempts Florida State Statute Which Prohibits Out-of-State Resolution of Construction Claims Involving...

Troutman Pepper Locke on

Sachse Constr. & Dev. Corp. v. Affirmed Drywall, Corp., 2018 Fla App. Lexis 9998 (July 18, 2018) - Sachse Construction, a Michigan-based general contractor, entered into a subcontract (the “Subcontract”) with Affirmed...more

Hogan Lovells

No oral modification clauses under English law

Hogan Lovells on

We commented on whether it is possible to verbally amend a "no oral modification" (NOM) clause in September 2016 (Non-variable variation - never say never), contrasting the position under English and South African law. ...more

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