The "New" AT&T Sucks The Same
Complaints

The "New" AT&T Sucks The Same

How Many Jobs Did We Lose In 2008? As Many As If We'd Fired The <em>Entire State of Wisconsin</em>
recession watch

How Many Jobs Did We Lose In 2008? As Many As If We'd Fired The Entire State of Wisconsin

Customer Bills Phone Company For Time Wasted, Gets Paid
Victory

Customer Bills Phone Company For Time Wasted, Gets Paid

Consumerist Friday Flickr Pool Finds
Flickr

Consumerist Friday Flickr Pool Finds

Do Not Think About Walmart's Milk Pricing Scheme Or Risk Brain Injury
Bad deal

Do Not Think About Walmart's Milk Pricing Scheme Or Risk Brain Injury

$400k ATM Receipt - Madison Ave Doin' Just Fine
ATMs

$400k ATM Receipt - Madison Ave Doin' Just Fine

Consumerist

  • Display
    • All
    • Top
    • Scams
    • Economy
  • Most recent
    • Most recent
    • Most popular
    • Most discussed
    Username:
    Password:
    loading comment page
    new user? | forgot password?
    More top stories »
    Consumerist
    • « next »
      early termination fees

      Why Corporate Lawyers Get "Confused" When You Try To Escape Contract Over Material Adverse Changes

      By Ben Popken, 1:34 PM on Wed May 9 2007, 4,490 views

      Now we know why cellphone companies have been giving customers such a hassle when they try to cancel over material changes to the contract: there's two possible definitions. Ken Adams, an experienced corporate lawyer who drafts a lot of contracts, says:

      According to Black's Law Dictionary, one meaning of material is "of such a nature that knowledge of the item would affect a person's decision-making process."

      Another meaning of material is "significant," in other words "important enough to merit attention."

      Price, for one, is historically know to affect a person's mind when buying.

      Sometimes a cellphone company will try, for instance, to argue that changing a text message rate from .10 to .15 isn't a big deal, especially if you haven't used "a lot" of that particular kind of text message. Adams suggests that lawyers use "non-trivial" if they intend the second meaning.

      We agree. The more precisely legal definition should be used when lawyers draft a legal contract.

      Otherwise, why not use definition 11 (dictionary.com), "pertaining to or characterized by an undue interest in corporeal things; unspiritual," and argue that there's no voiding, as the contract is still a celibate? — BEN POPKEN

      Rethinking "Material" and "Material Adverse Change" [AdamsDrafting] (Thanks to Peter!)

      UPDATE: Scans of Black's Law Dictionary definition for "material," inside...


      RELATED:
      Verizon Keeps Making Up Contract law To Prevent Customers From Cancelling Without Penalty
      T-Mobile Confirms You Can Cancel Without Fee Over Texting Price Increase
      Verizon Redefines "Materially Adverse" To Prevent Customer Cancellations
      Verizon: 34 Txt Msgs= Material Adverse Effect
      Verizon Makes Canceling Over Their Txt Msg Hike Impossible

      Read More: early termination fees, Cancellations, Contracts, Readers, Cellphones, materially adverse changes

      Loading comments ...

    New York, 7:43 PM
    Fri Jan 9
    30 posts in the last 24 hours

    Consumerist team

    Tip Your Editors:
    tips@consumerist.com

    Editor:
    Ben Popken | Email | AIM

    Senior Editor:
    Meghann Marco
    Email | AIM

    Interns:
    Alex Jarvis | Email

    Comments Moderator:
    Email | AIM

    SUBSCRIBE TO Consumerist RSS

    • Archives
    • About Us
    • Privacy Policy
    • User Agreement
    • Help
    • Contact Us

    © 2005-2009 Consumer Media LLC