Redundancy Dangers

Just came from a case law update, and this is worth repeating.

Words matter more than numbers in contracts (at least in Texas). Often, when I see numbers in contracts, I see words followed by numbers, like this... one million seven thousand and no cents ($1,700,000.00). As in, the loan amount is one million seven thousand and no cents ($1,700,000.00).

A careful reader of the above might have noticed that I left out a very important word, "hundred" as in one million seven HUNDRED thousand and no cents.

In Texas, the court found that $1,007,000.00 was the correct reading much to the distaste of the lender and to the joy of the lendee. Ouch for who ever wrote that $693,000 mistake.

That's why I always use only numbers and not words. In a contract, such as a lease, using only numbers increases the readability of the lease (in my opinion), and reduces the chances for a mistake. Also, most leases are already long enough and using numbers goes ahead and shortens what is already a long enough read.

I hope the discussion above has made it clear why it is worth your wild to have a professional advocate on your behalf. As both a commercial real estate attorney and real estate sales agent, I can make sure your interests are protected on both the economic and legal sides of a deal.

If you have any questions or comments, send me an email to bendalton@crecl.com. Also, if you know anyone looking to buy, sell or lease space in Dallas or the surrounding areas, I do appreciate referrals.