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Deconstructing Contracts with CrossCheck 365

Glossary of CrossCheck 365 Terms

Complexity: The Complexity rating indicates the number of items checked by CrossCheck, including all Defined Terms, all Usages of Defined Terms, all Cross-References, and all Outline Items.

Cross-Reference: A Cross-Reference is a reference to a labeled section, usually within the same document.

For example:

“Company Debt” shall have the meaning set forth in Section 1.1(c).

In the preceding sentence, “Section 1.1(c)” is a Cross-Reference.

A Cross-Reference can refer to the section the Cross-Reference appears in, usually preceded by “this”. This is also called a “self-reference”.

For example:

Section 4.3. Obligations of Confidentiality.Except as otherwise provided in this Section 4.3, the obligations of confidentiality shall expire 24 months after the Signing Date.

Defined Term: A Defined Term is a word or phrase that is used to represent a longer or more complex phrase or idea in a contract. The conventional method used to create a defined term is to capitalize the first letter of the significant words in the term and to put the Defined Term in double quotes at the point of definition.

For example:

This Agreement (“Agreement”) is by and between ABC Corporation (the “Company”) and Buyers Inc. (the “Customer”).

In the preceding sentence, Agreement, Company and Customer are Defined Terms.

Defined Term Usage (or Usage): When a Defined Term is “used”, or referred to outside of the definition, the convention is to capitalize the usage the same way the Defined Term is capitalized, but without quotation marks.

For example:

Now, therefore, Company and Customer agree to the following terms and conditions.

In the preceding sentence, Company and Customer are Usages.

Verified Score: This score represents the percentage of Defined Terms and Cross-Reference items that had no issues or errors detected by CrossCheck.