WHY IS BOILERPLATE ONE-SIDED?

Perhaps the most robust feature of fine-print terms in contracts is their bias in favor of the drafter. It is a puzzling feature because one-sided boilerplate accompanies not only “bad” consumer contracts but also almost every contract, including contracts for the sale of high-end goods and contracts between sophisticated parties. Why, then, are contracts often “worse” than the products with which they come? Does one-sided boilerplate have a role that goes beyond simple rent expropriation? The first five chapters in this volume provide novel insights on this fundamental question. They document the extent of the phenomenon of one-sidedness and explore its role in market contracts.