Tips For Drafting Contractual Nonreliance Clauses

By Amy Park and Niels Melius ( February 13, 2018, 10:58 AM EST) -- Contractual nonreliance provisions, sometimes called "big boy" letters, have received their fair share of attention. And rightly so. A properly drafted nonreliance provision can be a powerful tool in defeating an adversary's claim of reliance on extracontractual representations. While much of the discussion about nonreliance provisions has focused on the precision with which they should be drafted, little attention has been paid to the effect forum selection and choice-of-law issues have on such provisions. The choice of where to litigate and which law will govern can significantly impact, if not conclusively determine, the outcome of any dispute involving a nonreliance provision. Practitioners should be as deliberate in choosing their law and forum as they are in drafting their nonreliance terms....

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