Tal Kastner, ‘Systemic Risk of Contract’

Complexity and uncertainty define our world, now more than ever. Scholars and practitioners celebrate modular contract design as an especially effective tool to manage these challenges. Modularity divides complex structures into relatively discrete, independent components with simple connections. The benefits of this fundamental drafting approach are intuitive. Lawyers divide contracts into sections and provisions to make them easier to understand and reduce uncertainty. Dealmakers constructing complex transactions use portable agreements as building blocks to reduce drafting costs and enable innovation. Little attention, however, has been paid to the risks introduced by modularity in contracts …

Kastner, Tal, Systemic Risk of Contract (June 17, 2021). Brigham Young University Law Review, forthcoming.

First posted 2021-07-02 08:00:01

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