The freedom to make contracts is a liberating feature of commercial life, yet too often contracts turn into tyranny, when haggling over fine print makes two sides mis-trust each other. This problem, and some solutions, are explored in this chapter from Margin of Trust: The Berkshire Business Model, by Lawrence Cunningham, a professor of contract law and expert on Warren Buffett and Berkshire Hathaway. Specific topics include Berkshire's partner 3G, and acquisitions of Scott Fetzer, National Indemnity, Nebraska Furniture Mart, Benjamin Moore, and Kraft Heinz. The chapter explains, in the context of dealmaking and contracts, business views associated with Mr. Buffett and legal views on contracts and corporate law of his partner, Charlie Munger.
GW Paper Series
GWU Law School Public Law Research Paper No. 2019-72; GWU Legal Studies Research Paper No. 2019-72
Cunningham, Lawrence A., Chapter 4 from Margin of Trust: The Berkshire Business Model published by Columbia University Press (December 2019). GWU Law School Public Law Research Paper No. 2019-72; GWU Legal Studies Research Paper No. 2019-72. Available at SSRN: https://ssrn.com/abstract=3502942