Whether you rent a car at Avis, purchase a KLM ticket to Amsterdam on Expedia or buy a new Ferrari 612 Scagletti from your local car dealer, you have probably encountered a boilerplate or an adhesion contract. You probably don’t read boilerplate contracts. But do lawyers actually read boilerplate contracts?
David Lat, writing in Above the Law, noted that Judge Richard Posner made one remark that stole the show at a panel about regulation at the recent American Constitution Society conference. He summarized his remark on Twitter:
Judge Posner at ACS panel: For my home equity loan, I got 100 of pages of documentation; I didn’t read, I just signed.
Judge Posner is perhaps one of the most important legal thinkers alive. If he doesn’t read boilerplate language when entering into an important home equity loan contract, should you?
I generally read boilerplate language. I try to get a general idea of what I am getting myself into. If I am purchasing an airline ticket, it is important to know the cancellation policy. I pay special attention to amendments to the boilerplate contact, especially those credit card mailers, which often change late payment fees or interest charge changes.
Don’t expect that you can change the provisions of the boilerplate, particularly in consumer transactions involving multinational corporations. If you have difficulty understanding certain provisions of the agreement, ask questions.
If you don’t like certain provisions of the boilerplate, your only recourse may be to walk away.
Do you read boilerplate contracts? Have you ever had any success in negotiating terms that were unfavorable?
Frederic R. Abramson of The Law Office of Frederic R. Abramson practices contact law in the state of New York. If you have any questions regarding contract law, call me at 212-233-0666. This is not boilerplate.