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Legal analysis of Bilbo’s contract in The Hobbit

posted by Jason Kottke   Jan 22, 2013

In The Hobbit, Bilbo Baggins signs a contract with a company of dwarves to serve as their burglar in their quest to reclaim the Lonely Mountain from a dragon. Lawyer James Daily analyzed the contract in detail for Wired.

Even in the book’s version we see an issue: the dwarves accept Bilbo’s “offer” but then proceed to give terms. This is not actually an acceptance but rather a counter-offer, since they’re adding terms. In the end it doesn’t matter because Bilbo effectively accepts the counter-offer by showing up and rendering his services as a burglar, but the basic point is that the words of a contract do not always have the legal effect that they claim to have. Sometimes you have to look past the form to the substance.

See also How valid is the implied legal advice in Jay-Z’s “99 Problems”?

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