Boilerplate definition
/What is Boilerplate?
Boilerplate refers to the standard legal text in a contract, which is rarely changed. Boilerplate text is normally inserted into a contract by the creator of the contract, who does not allow the other party to the contract to alter it. For this reason, boilerplate typically favors the interests of the contract creator.
Advantages of Boilerplate
Boilerplate can also be used to increase the efficiency of the contract-writing process, so that attorneys only have to focus on a few key parts of a contract that vary from the norm. This text is commonly used for contracts that are expected to be re-used in volume. For example, a lender could use the same boilerplate text in thousands of mortgage contracts, while a life insurance firm could use the same boilerplate in all of its life insurance policies.
The use of boilerplate also cuts down on the number of mistakes in a contract, since a firm can lock down the text in a boilerplate section. Doing so minimizes the risk of any errors being introduced into the boilerplate text.
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Disadvantages of Boilerplate
The main concern with boilerplate text is that it is not tailored to the specific requirements of the parties to a contract. This means that some clauses could differ from the intentions of the parties, making it more difficult to enforce certain aspects of the contract.