After using CrossCheck 365 to analyze thousands of contracts filed with EDGAR (the SEC’s Electronic Data Gathering and Retrieval system), we’ve identified the 10 most common mistakes.
- Saying that a term is defined in Section X when it is actually defined in Section Y or not defined at all.
- Cross-references to sections that don’t exist.
- Referring to “this Section X” while in Section Y.
- Ambiguous cross-references caused by two sections with the same number.
- Missing definitions.
- The same term being defined two or more times.
- Terms that are defined but never used.
- Inconsistent capitalization, spelling or hyphenation of references to defined terms.
- Missing or duplicate outline items.
- Lists that only contain one item.