Which statement best describes the purpose of a boilerplate contract?

• A. to simply state the terms of a complex contract
• B. to provide a base point to start negotiations
• C. to provide an advantageous contract for one party
• D. to define the contested issues in a contract

Answer: (C)

Boilerplate contracts are standard, prewritten terms that firms use to quickly memorialize an agreement. The reason this best describes their purpose is that such templates are often drafted by one party and include terms that set a favorable balance of risk, liability, and remedies for that drafter. Using these ready-made provisions can give that party an advantage, making it easier to seal a deal without extensive back-and-forth. While boilerplate can serve as a starting point for negotiation, its defining feature is the potential for terms that favor the drafter, rather than simply outlining the deal or resolving disputed issues.