The Common Errors in Business Sales Documents

Errors in Business Sales Documents

The conclusion of a business purchase agreement is not only the acquisition of production or other physical facilities. The subject of the transaction is always the constituent documentation of any organization. The article will consider common errors in sales documents.

Error in the contract: what to do?

For most people, starting their own business is a new period in their lives; they are full of enthusiasm, hopes, and dreams. But it is also a time of many mistakes that people make when they do not yet have sufficient experience in a certain area, and most importantly, in doing business in general.

And what is most interesting is that completely different people often make the same typical mistakes. Therefore, communicating with experienced entrepreneurs who have already gone this way and made conclusions is necessary to avoid them. In addition, you can seek advice from competent people and business consultants and communicate with people working in your business field.

The first step to starting a business is registration and paperwork. The desire to do business as soon as possible leads to the fact that in a hurry, a business concept was not developed qualitatively, the name and purpose of the company’s activities were clearly formulated, and the market was not studied. And sometimes, it turns out that after working for several months, the owner concludes that it is necessary to change the name or other points that are officially registered at the beginning.

The most widespread errors in business sales documents

Many mistakes made at the stage of concluding and signing a contract for the sale can cost the buyer months of dragging through the courts and losing the purchased property. However, the termination of real estate purchase and sale transactions can be avoided by paying attention to the main mistakes in their conclusion.

Despite the lack of legislative regulation of this issue, based on contractual practice, the following types of errors can be deduced: 

  • Proper errors. They occur when, when drawing up a contract in writing, either the preliminary oral agreement of the parties is distorted or attention is not paid to some points important for the execution of the contract.
  • Errors due to misrepresentation. Such errors are also called aggravated errors. And this is no coincidence. After all, such errors arise, as a rule, due to deliberate actions (misleading or deception) of one of the parties to the contract or third parties.
  • Typos. It is an error found in an already typed text: a letter or an extra letter, a word omission, a word distortion, etc. As a rule, typos distort the meaning of the text or the facts stated in it.

Depending on the type of error, various legal consequences for the parties to the contract are possible.

Virtual data room: how to avoid errors in sales documents?

High-quality preparation significantly affects the value of the company and the effectiveness of the sale. Therefore, modern companies use virtual data room software to organize efficient data management. It is a cloud-based platform that automates all routine tasks related to deal document management. 

The main advantages of the data room are:

  • confirming the legal significance of documents with the help of a qualified electronic signature;
  • ensuring the secure transmission of information;
  • access to documents has a limited number of employees of organizations;
  • conducting almost instantaneous sending and receiving of documents in the form of files;
  • checking documents for errors, discrepancies, and correctness of filling before sending.

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