‘Contract in Crisis’

Emily Strauss, Crisis Construction in Contract Boilerplate, 82 Law and Contemporary Problems 163 (2019). Oddly enough, contract law may help quell at least some of the panic that comes with a pandemic. Sure, contract doctrine can’t tell us about the spread of the COVID-19 virus. But Emily Strauss’ article Crisis Construction in Contract Boilerplate shows how courts adeptly and quietly helped the economy recover during the 2008 financial crisis. She tracks the surprising outcomes and rationale of cases allocating risk among loan originators, investors in residential mortgage backed securities (RMBS), and insurers in those transactions, and reports that they followed a method of contract interpretation she dubs ‘crisis construction’ … (more)

[Martha Ertman, JOTWELL, 6 April]

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