Friday, May 26, 2006
You can't do a major deal without transactional lawyers, and you can't get good transactional lawyers without law professors to teach them contracts. This is obviously a good thing. But what exactly is it that these lawyers do for the money?
Duke's Steven L. Schwarcz (left) offers his own empirical take on the question in Explaining the Value of Transactional Lawyering. Here's the abstract:
This article attempts, empirically, to explain the value that lawyers add when acting as counsel to parties in business transactions. Contrary to existing scholarship, which is based mostly on theory, this article shows that transactional lawyers add value primarily by reducing regulatory costs, thereby challenging the reigning models of transactional lawyers as "transaction cost engineers" and "reputational intermediaries." This new model not only helps inform contract theory but also reveals a profoundly different vision than existing models for the future of legal education and the profession.