Clear Legal Drafting of Lease Documents for Commerce

How to create legal lease agreements for the long-run for commercial tenants.

1. Modern Legal Drafting Cheryl Stephens 2021 [email protected] 2021 Advanced Commercial Leasing Institute Say What?  The Art and Science of Clear Drafting

2. The Ten Commandments for Plain Language Drafting From The Decline and Fall of Gobbledegook , 1991 The Canadian Bar Assoc./Canadian Bankers' Assoc.  Consider your reader and write with that reader's point of view in mind.  Write short sentences.  Say what you have to say, and no more.  Use the active voice.  Use simple, "everyday" words.  Use words consistently.  Avoid strings of synonyms.  Avoid unnecessary formality.  Organize your text:  in a logical sequence,  with informative headings, and  with a table of contents for long documents.  10. Make the document attractive and designed for easy reading. 

3. Stephens Laws of Plain Language Legal Drafting  Use 1st and 2nd person or simple names. Use “they” as singular pronoun. Write in the active voice. Don't use nouns made from verbs. Organize short, concise sentences. Use positive words and constructions. Choose words that suit your reader. Don't use shall: use may, will or must. From A Crash Course in Legal Drafting by Cheryl Stephens, available in Dropbox folder

4. Legal Design https://stefaniapassera.com/2018/03/28/legaldesign-and-legaltech-to-contracts/

5. Stages to contract design process 1. Decide what you want to say. • Know the deal. • Know the business context. • Decide what risk you can tolerate. • Decide which potential terms are relevant. This determines how simple or complex the contract can be. 2. Decide how to say what you want to say clearly and concisely. • Common words • Legislative sentences-̶ actor subject-active verb-object order • Brevity but with enough detail for clarity • Explain duties and obligations in positive, active terminology. 3. Design document. • Page structure • Page layout • Typography • Visual organizers • Helpful graphics

6. Legal Innovations https:// www.youtube.com / playlist?list =PLyV_ ZCDf3 -_ k1HXRdDrByTo-XI33MxFKO Legal Design World Commerce and Contracting Applying a process approach and information architecture Pattern libraries Introductory videos Conscious Contracts .com Relational approach to negotiation Contract tailored to the parties and context Introductory video A relational contract is a contract whose effect is based upon a relationship of trust between the parties. This is for contracting practitioners trying to craft strategic, collaborative relationships with their procurement and outsourced business partners. https:// en.wikipedia.org /wiki/ Relational_contract Relational Contracts

7. Use visuals with words   Visuals are read more quickly, with fewer errors. The most effective communication combines explanatory text displayed in or with visual. If different requirements have different conditions, set out a table:                          

8. World Commerce and Contracting 1. Legal validity A former Chief Justice of Australia, Robert French,  stated  that as long as the meaning of the images in contracts is clear, then, of course, they are binding. Stanford University Professor Jay Mitchell’s detailed analysis suggests that  “contract and evidence law foundations for use of visuals in contracts are firmer than one might expect.” For those who seek “tested” precedent, court cases teach us that courts are indeed able to handle and interpret images and symbols, even if these are novel or unfamiliar – see for example, these case around the interpretation of  emojis and emoticons  or  illustrations or worked examples . https://www.worldcc.com/Research-Analytics/Contract-Design-Simplification 2. Videos of pilot project examples https://www.worldcc.com/Advocacy/Simpler-Contracts-by-Design 3. Contract Design Pattern Library https://contract-design.worldcc.com/ Current Pattern families

9. Contract playbooks Align legal and business teams upfront to close contracts faster. Leverage knowledge for the benefit of the whole team. Better manage risk through standardization of content and processes. All information on a specific contract is available in one place. Business and legal teams will save a lot of time by no longer having to answer the same questions over and over again and by not having to reinvent the wheel. Newcomers can easily get up to speed on the ins & outs of a specific contract. Contract playbooks are useful resources for training and auditing purposes. Creating a contract playbook is the ideal preparation for contract automation projects.

10. Guideline: perspective or point of view Cheryl says Use 1st or 2nd person pronouns or simple names for participants.  1st person: I or we  2nd person: you  Define “you” and “we” if necessary.  When it will work, use “they” as a singular pronoun. Expert elaboration Use personal pronouns, but not too many. Make a direct statement to reader or set up a dialogue. Brain science says Use pre-attentive tools to gain the reader’s attention and focus. Canadian Bar Assoc. says Consider your reader and write with the reader’s point of view.

11. Guideline: words Cheryl says Choose words that suit your reader. Don't use shall: use may, will or must. Expert elaboration Choose words with care: prefer familiar words. Avoid jargon. Don't use extra words. Avoid noun strings. Use graphs instead of words whenever appropriate Brain science says Choose familiar, everyday words. Choose common and concrete words, not abstractions. Use words consistently ; avoid variation for the sake of elegance. Use words and phrases that the reader can picture or perceive with other senses. Canadian Bar Assoc. says Use simple, everyday words. Use words consistently. Avoid unnecessary formality. Avoid strings of synonyms.

12. Guideline: sentences Cheryl says Write in the active voice. Don't use nouns made from verbs. Organize short, concise sentences. Use positive words and constructions. Expert elaboration Avoid splitting sentence kernel - Embedding ‑ splitting the kernel of the sentence by injecting other words Watch out for too many commas (may indicate two sentences) Semicolons and colons may indicate need for new sentence Cohesion sometimes aided by longer sentences Brain science says Meet readers’ expectations for natural sentence order in the language you are using. In English that is Subject-Verb-Object. (Co-incidentally, a legislative sentence.) Put your subject and verb near each other and near the start of sentence. SVO . M odifiers and conditions should follow the main ver b. Prefer core verbs to nouns created from them, to express the main message or purpose. Keep sentences short, at an average of 20 words or fewer. Use positive constructions. Use active voice verbs unless you can justify passive voice. Use a concept (anything less concrete) as the subject of the sentence if you need to. But don’t use it to express the main action. Keep lists to only 3 – 5 items. Simplify and remove words that are not doing work to clarify the meaning.

13. Structural Priming Subject Verb Direct Object a. Subject Copula Predicate b. Boys like rockets. b. Sam is lonely. S_V_O

14. Keep to the natural subject-verb-object order.  Organize sentences to be concise; keep sentences short.  Move qualifiers, provisos, or exceptions to the end of the sentence or to separate sentences.  Avoid wordiness. State the action then list the conditions. Don’t try to cover all the possibilities.  Before Subject to the terms and limitations set out in these Provisions should you become Totally or Partially Disabled while your Insurance is in force, we will pay you monthly, in arrears, the benefits set out in this Part.  After We will pay benefits to you monthly, in arrears, subject to the provisions of this policy. 

15. Use active voice verbs Who is supposed to do what to or for whom?  Passive voice focuses on the object receiving the action rather than on the subject carrying out the action.  It can make the identity of the actor ambiguous.  Before When a complaint against you has been received, a file will be opened...  After When your  client has  filed a complaint against you, the Competency Department will open a file … Legislative sentence   Actor Acts The Bank requires that you maintain property insurance on the collateral, if  this note is secured by a motor vehicle, boat or aircraft.  Actor   Acts Upon   Object   The Committe suspended  the lawyer. 

16. Use nouns for things and verbs for actions Don't use nouns made from verbs: turn them back into verbs.  Nominalizations [nouns derived from verb] replace personal nouns plus verbs which removes the  actor s and the action.  They act like passive verbs removing an actor as subject. Change to active verbs.  Noun form Active verb The refusal of  … If you refuse …  The failure to …  If you fail to …  Prior to the completion of …  Before you complete …  Consideration of this matter should include...  Please consider...  An application may be submitted by mail if…  You may apply by mail if…  Upon written request by the individual…  When you ask in writing…

17. Don't use  shall:  use  may  or  must. Don't use  shall:  use  may  or  must.     Use "must" to impose a duty. It is an imperative.  Use "may" to confer a power or a right, or to indicate that there is a choice;  “may” is to be construed as permissive and empowering  Use “will” to express future action.   What are the meanings here?  The architect shall make changes to the drawings before May 10, 1997.  The architect must make changes to the drawings before May 10, 1997.  The architect will make changes to the drawings before May 10, 1997.  The architect may make changes to the drawings before May 10, 1997.   

18. Use positive perspectives limitation  prohibition  unless  until  absent  ambiguous  avoid  contrary  delinquent  deny  doubt  except  forbid  lack  minimum  no less than  no more than  no smaller than  sanction  transgression  Prefixes un-   in-  mis-   il -  Words none, unless, until, fail, exempted, unlawful, invalid, void  Concepts testimonial privilege negligence legally blind constructive (possession, etc.) volenti  non fit injuria   Isolate exceptions and conditions.  Rewrite negatives as positives.  Avoid layered negatives.   Don't  doany  more than is necessary.  Instead:   Do only that which is necessary.   This policy shall not be valid unless countersigned by our authorized representative. This policy becomes valid when countersigned by our authorized representative.   Should you fail to receive a billing notice within five days of a premium due date, you should nevertheless make a conditional payment to the RIA within the Days of Grace not less than the amount of premium that you were billed on the preceding premium due date.  You must send your premium payment within 31 days of its due date. If you have not received our bill at least five days before the due date, you must send us a conditional payment equal to the last premium you paid. 

19. Guideline: organization and structure Cheryl says Expert elaboration Use ample white space. Space should be used to convey structure. Suit organization plan to topic and your purpose Consider SER (Statement‑Example‑Restatement) Use subheads Use signal words Use summaries Increase cohesion with links between sentences and paragraphs Avoid too many different ideas in a short passage Brain science says Framework Start with a framework for the content to help the reader interpret word meanings. Help the reader create a mind-map of the material. Use markers like headings for categories. Readers expect a beginning and an obvious ending Structure Chunk and label the content to make it easier to process and remember. Chunk the information: keep sentences short and simple. Keep lists to only 3 to 5 items. Simplify; remove distractions. Canadian Bar Assoc. says Organize your text:  in a logical sequence,  with informative headings, and  with a table of contents for long documents.  Make the document attractive and designed for easy reading. 

20. Layout, design, and typography can be  obstructions or aids  to communication.  Here are some basic pointers for making your documents legible:  Use normal, standard punctuation.  Use minimal capitalization.  Use 12-point type height.  Use at least  1.15 line spacing but not double-spacing.  Provide adequate margins for note-taking. (for example, 2-3 inches of margin divided between sides) Use a ragged right margin rather than justification. 

21. Disclaimer sample This lease is written in plain language to make it understandable to all users. Legal terms of art are used when necessary, but unnecessary legal jargon is omitted. This is intended to make the lease clearer, not to change its effect under prevailing law.

22. Resources Books (recent) Wordrake Editing Software for Professionals from Gary Kinder (legal writing expert) Legal Sifter Contract Review and library Kenneth Adams, legal advisor Software by subscription PerfectIt Legal Enforce the legal writing and style rules you know, from the sources you trust Typography for lawyers, Matthew Butterick (free or donation) https://typographyforlawyers.com/ Contract Design Pattern Library from World Commerce and Contracting formerly IACCM Drafting Guide for Private Legal Documents by Richard Castle , Kindle Edition Contains property precedents A Manual of Style for Contract Drafting by Kenneth A. Adams Hardback Currently free down load of chapyer addressing the usual comma proble , https://www.wordrake.com/syntactic-ambiguity?utm_content=150970606&utm_medium=social&utm_source=twitter&hss_channel=tw-902495816 Practical Tips on How to Contract: Techniques and Tactics from an Ex- BigLaw and Ex-Tesla Commercial Contracts  Laura Frederick, Kindle edition

23. Simplification issue: numbers People have lower numeracy skills than language skills. Per International Literacy Survey Use consistent numeric units. Wrong comparison: Better: 95% of patients improve while 5 in 100 get worse.   95% of patients improve while 5% improve. Keep compared units parallel, but... Is there a .53 person in the real world? “While the United States has seen more than  half a million deaths  from covid-19 — with a  death rate  of more than 160 per 100,000 of population — New Zealand has lost  only 26  people at a rate of 0.53 per 100,000.” Check your math skills Be careful not to confuse percent with percentage point . A change from 10% to 13% is a rise of 3 percentage points. This is not equal to a 3% change; rather, it’s a 30% increase. ---AP Style Guide Tweet, February 5, 2021

24. Access my Dropbox folder with legal resources https:// www.dropbox.com / sh / b6i9ktqa7n2lv92 / AADVlA0OWn-pooIy3I91fxL_a?dl =0

25. Examples and exercises Online punctuation quiz for legal writers

26. Stepwise revision Remove extraneous words Remove unnecessary words and phrases Remove jargon or legalese Simplify sentences Choose simpler words Correct grammar and flow

27. Oxford or serial comma  The canning, processing, preserving, freezing, drying, marketing, storing, packing for shipment or distribution of: (1) Agricultural produce; (2) Meat and fish products; and (3) Perishable foods. Acknowledging that these are incomplete sentences. 1

28. Oxford or serial comma  The canning, processing, preserving, freezing, drying, marketing, storing, packing for shipment or distribution of: (1) Agricultural produce; (2) Meat and fish products; and (3) Perishable foods. The work of canning, processing, preserving, freezing, drying, marketing, storing, packing for shipment , or distribut ing : 1. agricultural produce 2. meat and fish products, 3. perishable foods. Acknowledging that these are incomplete sentences. 1 2 Concerning agricultural produce, meat and fish products, or perishable foods, the canning processing preserving freezing drying marketing storing packing for shipment distributing of the product. 3 Recognizing the rules for tabulated sentences and using parallelism and modern punctuation of simple lists.

29. HS may, in its discretion, retain one or more environmental consultants of its choosing to inspect the Property, including any soils, surface waters, wells, and groundwater on or under the Property and conduct such tests, samples, engineering studies, and examinations upon the Property as HS or any such consultants deem appropriate to determine the environmental condition of the Property and the existence or nonexistence of environmental hazards on or about the Property such as, but not limited to, any past or current generation, storage, release, threatened release, disposal, and presence and location of asbestos, PCB transformers, petroleum products, flammable explosives, underground storage tanks or other hazardous, toxic or contaminated substance or condition. Example

30. Sample revision HS may , in its discretion, retain any one or more environmental consultant s of its choosing to inspect the Property, including any soils, surface waters, wells, and groundwater on or under the Property and conduct such tests , samples, engineering studies , and or examinations upon the Property as HS or any such of its consultants deem consider appropriate needed to determine discover the environmental condition of the Property and the existence or nonexistence presence of environmental hazards on or about the Property, like: such as, but not limited to,. any past or current generation, storage, release, threatened release, disposal, and presence and location of asbestos, PCB transformers, petroleum products, flammable explosives, underground storage tanks or other hazardous, toxic or contaminated substance or condition. HS may retain consultants to inspect the property and conduct tests, studies, or examinations that HS or its consultants consider needed for the environmental condition of the Property or presence of environmental hazard. The purpose being to discover any past or current underground storage tanks or other hazardous, toxic or contaminated substances or conditions. The inspection may include any soils, surface waters, wells, or groundwater.

31. Rewrite exercise Example 3 Background: This is a clause in an irrigation easement proposed by the attorney for a sophisticated land developer. It is to be proposed to an unsophisticated farmer who does not have and attorney and does not want to spend the money on an attorney to review the easement agreement. Developer has asked you to rewrite this clause so it is clear and understandable by the farmer.

32. Original Integration; Termination of Prior Rights to Use.   This Agreement is the complete, entire, final, and exclusive agreement among the Parties hereto and supersedes all prior and contemporaneous negotiations, agreements , and understandings between the Parties, whether written, oral, express, implied, or any combination thereof, with respect to the subject matter contained herein.  Without limiting the generality of the foregoing,  and in consideration of Developer granting the Easement herein Farmer hereby expressly terminates all prior express, proscriptive, and implied easements, licenses, leases, and all other rights to use all or any portion of the Developer’s Property.

33. Revision Integration; Termination of Prior Rights to Use. This Agreement is the final agreement between Farmer and Developer. This Agreement cancels all written or oral agreements between Farmer and Developer about granting the easement to the Farmer to cross over the Developers’ Property for sending water to Farmer’s land. Farmer agrees that Farmer will not use any other part of the Developer Property.

34. Until we meet again [email protected]