In our daily lives and in the business world, we handle countless documents that contain numbers, especially monetary amounts. From paying an invoice to reviewing a property’s rental statement, these figures are everywhere, and they demand our utmost attention. Imagine a contract for $50,000. A simple typo—an extra zero—could instantly turn it into $500,000. In the world of legal and financial documents, such errors aren’t just typos; they can be catastrophic.
Documents Where Precision is Paramount
Below are some of the key documents where you must be especially careful with numbers and amounts:
- Legal Contracts & Agreements: This includes purchase agreements, service contracts, and loan agreements that specify payment amounts.
- Cheques: As we discussed in our previous guide, the amount in words on a cheque is the legally binding amount.
- Wills and Trusts: Writing out specific monetary bequests in words helps prevent any ambiguity.
- Deeds and Property Documents: Clearly defining the sale price of a property is critical for legal transfer.
- Powers of Attorney: When granting authority to handle financial matters, amounts should be spelled out precisely.
- Promissory Notes: Formalizing a debt repayment requires a clear, written amount.
- Court Orders & Settlements: The awarded or settled amount must be defined without any room for misinterpretation.
The Legal Power of Words
When you write a number or amount in these documents, it is absolutely essential to also write it out in words. This practice serves as a critical cross-check against the figures. It’s far more difficult to alter words like “Twelve Thousand” than it is to add a zero to a number like “12,000.”
This is why, in a legal discrepancy, the written words are legally binding and take precedence over the numerical figure. This rule is enshrined in legal codes and banking regulations precisely to prevent fraud and accidental errors.
For a clear example, if a contract states “$10,000.00” in figures but the written amount says “One Hundred Thousand Dollars Only,” the legally binding amount is indeed “One Hundred Thousand Dollars Only.”
Formal Presentation: Best Practices for Writing Numbers
To ensure your written amounts are formal and unambiguous, follow these best practices:
- Capitalization: It is best practice to capitalize the first letter of each word in the number for a formal presentation (e.g., “Twenty-Five Thousand”).
- Hyphenation: Use hyphens for all compound numbers (e.g., “Forty-Seven”).
- The Word “And”: Use “and” to connect whole numbers and decimal or fractional parts.
- Add a Suffix: Always add a suffix like “Only” or “Exactly” at the end of the written amount to prevent any unauthorized additions.
- Fractions and Cents: For fractions or cents, it’s formal to write them in text, such as “and fifty cents” or in a fraction style like “and 50/100.”
Ensure Your Documents Are Legally Sound
In the legal and business world, your words are your strongest defense. Make sure they’re right and in the precise word format required for legal documents.