The CrossCheck 365 Blog

Deconstructing Contracts with CrossCheck 365

Top 10 Contract Drafting Errors

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.

  1. Saying that a term is defined in Section X when it is actually defined in Section Y or not defined at all.
  2. Cross-references to sections that don’t exist.
  3. Referring to “this Section X” while in Section Y.
  4. Ambiguous cross-references caused by two sections with the same number.
  5. Missing definitions.
  6. The same term being defined two or more times.
  7. Terms that are defined but never used.
  8. Inconsistent capitalization, spelling or hyphenation of references to defined terms.
  9. Missing or duplicate outline items.
  10. Lists that only contain one item.