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The Economics Hidden in the Contract

From the webinar presented by Kenneth Gustafson, CFA, Managing Director, Economics at iDiscovery Solutions, in partnership with Today’s General Counsel.

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The Economics Hidden in the Contract executive summary

“A contract is not just legal language. It is an economic mechanism.”

Kenneth Gustafson, CFA, Managing Director, Economics at iDiscovery Solutions

Every clause that sets a price, a volume, a benchmark, an exit, or an excuse decides who carries the cost when something changes. This summary shows where to look, and what the numbers say.

Two questions

The legal question
What does the contract require?

What event triggered the provision? Was performance excused, delayed, or modified?

The economic question
What cash flows does the clause create?

Who bears the market or volume risk? How large is the net difference against what would have happened without the breach?

The strongest legal strategy connects the two.

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Kenneth Gustafson, CFA

About Kenneth Gustafson

Kenneth Gustafson, CFA, is Managing Director, Economics at iDiscovery Solutions, with more than 25 years of experience in finance, risk management, and economics. He advises law firms, corporations, financial institutions, private equity sponsors, and government entities on economic damages, lost profits, valuation disputes, commercial litigation, and structured finance, with deep experience in financial, energy, and commodity markets. Before iDS, he was a Partner at Vine Advisors, founded KEG Capital, and led commodity structuring for the Americas at Citigroup.

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The full on-demand session is available, presented in partnership with Today’s General Counsel.

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iDS provides consultative data solutions to corporations and law firms around the world, giving them a decisive advantage, both in and out of the courtroom. Our subject matter experts and data strategists specialize in finding solutions to complex evidence challenges, ensuring data can be leveraged as an asset and not a liability.

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