Figure and Word Mismatches in Contracts: How to Catch Them
A single wrong figure can cost more than any abusive clause. "$12,000,000 (twelve million five hundred thousand)" looks like a detail, until each side defends the amount that suits them. These errors are more common than they seem, and they almost always start the same way: a reused template, a last-minute change, or a copy and paste.
The good news is that they are among the easiest errors to catch, because they don't require knowing the law: they require organizing and comparing. This guide gives you a method.
Why they happen
- Reused templates: the amount is changed in figures and the one in words is forgotten.
- Last-minute negotiation: a value goes up or down and the installments or the total aren't updated.
- Cross-references: a clause is added, the numbering shifts, and "per the fifth clause" now points to something else.
- Haste: the person signing reads the beginning and the end, and skims the middle.
The seven most common errors
| Type of error | Example | How to catch it |
|---|---|---|
| Figure differs from the words | "$12,000,000 (twelve million five hundred thousand)" | Read the words and write the figure separately |
| Installments that don't add up | 8 installments of $1,500,000 and a total of "$11,000,000" | Multiply and add: 8 × 1,500,000 = 12,000,000 |
| Contradictory percentage | "Commission of 3% (five percent)" | Compare the number with the words |
| Impossible date | "April 31" or "Monday, August 15" that falls on another day | Check a calendar |
| Unclear currency | An amount that doesn't say pesos or dollars | Look for the currency next to every figure |
| Different quantities | "2 machines" in one place and "three units" in another | Make a list of quantities |
| Broken references | "Pursuant to clause eight" and that clause doesn't exist | Go to each cited clause and check |
How to review it in six steps
- Highlight every figure in the contract: money, percentages, quantities, deadlines, and dates.
- Make a table with each figure, where it appears, and what it says. The differences show at a glance.
- Compare numbers with words. If an amount is written both ways, they must say exactly the same thing.
- Add and multiply. Installments must give the total, taxes or surcharges must be calculated correctly, and percentages on a base must produce the written value.
- Check the dates on a calendar: that they exist, that the weekday is right, and that deadlines make sense (delivery can't be before signing).
- Follow every cross-reference: open the cited clause and confirm it says what is claimed.
What to do if you find a difference
Before signing: ask for it to be corrected in writing and check the whole new version. Don't sign on a promise of "we'll fix it later": the signed version is the one that counts.
If you already signed: don't change the document yourself. The usual route is to correct it with an additional document signed by both parties (an addendum) that states the correct figure clearly. Keep the original contract, the correction, and the payments made.
On which figure prevails: it depends on the governing law, the type of document, and what the contract itself says; some include a clause stating whether words or numbers prevail. That's why the best protection is not knowing who wins the argument, but making sure there is no difference.
How a tool helps
Comparing figures and words by hand is slow and tiring, exactly when the most attention is needed. A tool does it without getting tired. The Catch checks the figures in the contracts it drafts and flags those that don't match between numbers and words, so you can fix them before signing. For your own contracts, use the six-step review above anyway: a second look never hurts.
If you're about to sign a contract, also read how to review a contract before signing.
Frequently asked questions
What happens if the amount in figures and in words doesn't match?
It depends on the governing law, the type of document, and what the contract says. There is no single answer, which is why the safest course is to fix the difference in writing before signing.
Should I write amounts in both words and figures?
It isn't mandatory in every case, but it helps: when they match, each figure backs up the other. What matters is that, if they appear both ways, they say the same thing.
How do I fix an error in a contract that's already signed?
With an additional document signed by both parties (an addendum) stating the correct figure. Don't modify the original yourself, and consult a lawyer if a lot of money is at stake.
How do I check that installments add up to the total?
Multiply the installment value by the number of installments and compare it with the total. If there is a down payment, add it. For example, 8 installments of $1,500,000 add up to $12,000,000.
Does a figure error make the contract void?
Not necessarily. An isolated error is usually resolved by clarifying what the parties meant, but that can cost time and money. It is far cheaper to catch it before signing.
This article is general information and is not legal advice. For your specific case, consult a lawyer.
This article is general information and is not legal advice. For your specific case, consult a lawyer.