Abstract
As it has evolved across decades of case law and legislative enactments, the Certainty Imperative has profoundly altered judicial decision-making in finance and lending by encouraging strict interpretive norms and rejecting more expansive contextual analyses. Over time, the Imperative’s methodological constraints have become a paralyzing force upon the judiciary, preventing it from engaging in legal reform. In essence, the law of corporate finance places the highest value upon the status quo. The methodological constraints imposed by the Imperative must be overcome. As modern corporate financing arrangements grow more complex, moral hazards arise when contractual language vests substantive rights and remedies in a manner that does not align with evolving economic interests. Courts must be empowered to apply more expansive analyses designed to allocate legal rights and remedies in a manner that is consistent with the actual economic arrangement of the parties.
Recommended Citation
Dick, Diane Lourdes
(2011)
"Confronting the Certainty Imperative
in Corporate Finance Jurisprudence,"
Utah Law Review: Vol. 2011:
No.
4, Article 6.
Available at:
https://dc.law.utah.edu/ulr/vol2011/iss4/6