ABSTRACT
Consensus templates – standardized contractual terms used by multiple parties operating within in a single market segment – offer significant efficiency gains for their users and have been utilized for more than a century in some of the world’s largest industries. Yet despite their advantages and market significance, consensus templates are not well understood. This article explores the development and use of consensus templates: when, why and by whom they are developed, and what organizational and other factors contribute to their success or failure. To answer these questions, we analyze eight consensus template development projects across industries including financial services, building construction, supply chain and biotechnology. We also compare the creation of consensus templates with that of technical interoperability standards, the development of which shares organizational similarities and legal considerations with consensus-based template contracts. We conclude that in order to be successful, consensus templates, like technical standards, must be developed using a balanced approach that does not unduly favor any one side in the market, must be promulgated by a trusted source, and must be adaptable to changing market conditions.
Contreras, Jorge L and Hancock, Liane, Consensus Templates (February 28, 2025), Case Western Reserve Law Review (2025, forthcoming).
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