Who Eats the Delta: Cost Escalation in the Work Letter
Construction input costs are up 7.1% year over year. The provision that decides who absorbs that is a two-page exhibit at the back of the lease that most negotiations treat as an afterthought.
Contracts
Above the Line, Below the Line: Non-Recourse Carve-Outs at the Maturity Wall
Eight hundred and seventy-five billion dollars of commercial mortgages mature this year, and most of them will be met with an extension rather than a payoff. The extension is where a non-recourse loan quietly stops being non-recourse.
The One-Way Ratchet: Operating Expense Clauses When Insurance Prices Fall
For eight years the operating expense clause did one job: move rising insurance premiums from landlord to tenant. Premiums are now falling, and the clause does not run in reverse.
Condition or Covenant: The Power Clause in Data Center Leases
The most valuable sentence in a data center lease is the one about electricity. Whether it is a condition or a promise decides who eats a two-year delay.
Why Land Contracts Get Specific Performance
For almost every other contract, breaching and paying damages is a legitimate option. For land, courts will make you close.
The Statute of Frauds: Why Some Contracts Must Be Written
The Statute of Frauds requires certain high-stakes contracts to be in writing—understanding which ones and why is essential for landowners and agricultural operators.
The Mailbox Rule: When Contract Acceptance Takes Effect
Common law has a default rule for when acceptance becomes effective—but most contracts are better off specifying their own.
Efficient Breach: When Breaking a Contract Is the Right Move
Sometimes the economically correct thing to do is break your contract—and contract law is designed to let you.