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Sunday, January 31, 2010

Sample Poor Contract Language

In class we will break off into 10 groups (approximately 7 students per group) and discuss the interpretation of the following clauses that I have seen in various contracts (each group will be given a clause to interpret and present to the class). Analyze each provision to see if it is definitive. Can it be made clearer?

1. Player will receive a bonus of $50,000 if he is selected to the Pro Bowl.

2. For any Canadian Football League post-season honor received by player, he will be paid a bonus of $75,000.

3. If player plays in 50% or more plays in the NFL season, he will be paid $100,000.

4. In exchange for receiving a fee of $250,000 in 2010, Player is to provide 5 promotional appearances.

5. If player scores 25 points during the NHL season, he will receive $50,000; if he scores 50 points during the NHL season, he will receive $75,000; if player scores 100 points during the NHL season, he will receive $100,000.

6. If driver fails to complete 50 laps in a NASCAR race, he will forfeit a pro-rata portion of his salary for the race.

7. If player in ranked in the top 5 in shooting percentage in the NBA, he shall receive $100,000.

8. If the WTA Essen event is cancelled, the venue rental fee of 1 million shall be returned to the Event promoter.

9. If Player leads the team in yards, he will receive $50,000 and his base salary will increase by $50,000.

10. If it is determined that player has suffered an injury to his shoulder, he will not be paid and will be obligated to return all monies back.