The CrossCheck Blog

Deconstructing Contracts with CrossCheck

Month: February 2023

Undefined Terms

Undefined Terms are words or phrases which are capitalized but not defined, not including proper names, dates, and commonly capitalized phrases such as “Board of Directors”. Unfortunately, the number of terms that are normally capitalized is huge and constantly changing….

Unused Definitions

Terms Defined but Never Used When a term is defined but never mentioned again, that constitutes an “unused definition.” The definition can and should be removed, unless the definition is referred to in a separate document. Importing definitions from other…

Duplicate Definitions

Terms Defined More Than Once A term should only be defined once in a document. If a term is defined more than once, any variation between the definitions can lead to serious problems. This error was found in 69.8% of…

The “this section” Error

The “this section” error is a self-reference such as “pursuant to this Section 3.4” which appears in a section other than Section 3.4. Did the author intend to refer to “this” section (wherever the self-reference appears) or another section (presumably…

The “as defined in” Error

This contract drafting error was found in 31.6% of EDGAR documents analyzed by CrossCheck. It stems from (i) a reference to a defined term “as defined in” a particular section or (ii) an entry in an index of defined terms….

The CrossCheck Top Ten

Contract Drafting Errors Found on EDGAR Welcome to The CrossCheck Top Ten. The following is a list of the top ten drafting mistakes in public company contracts, as filed on EDGAR. To come up with this list, we used the…