Define: Accuracy of Information
Accuracy of Information is a contract standard requiring that facts, figures, and representations a party supplies in writing are complete, correct, and substantially true in every essential respect. It underpins warranties, disclosures, and data-sharing clauses, giving the receiving party grounds to rely on, and remedies if, that information proves false or misleading.
Legal accuracy standard set & glossary spot-checked by Imad Mohammed Nazar , Skadden-trained M&A lawyer, Legal Engineer at GenieAI
What Accuracy of Information Means in a Contract
Accuracy of Information refers to a contractual expectation, and often an express warranty, that facts, figures, statements, and data supplied by one party to another are true, complete, and free from material error. It is not usually a demand for absolute perfection but rather a standard of substantial correctness in all essential aspects. Minor typographical slips or immaterial omissions typically will not breach the standard, but incorrect financial figures, false certifications, or missing material facts usually will.
The concept matters because contracts are built on disclosed facts. Whether a party is describing its financial position, its compliance status, the specifications of goods, or personal data about individuals, the other side relies on that information to make decisions, price risk, and allocate obligations. Where information later proves inaccurate, the contract needs a mechanism to determine fault, remedy, and consequence, and that mechanism starts with how accuracy is defined.
How Accuracy of Information Is Defined or Measured
Most contracts do not attempt scientific precision when defining accuracy. Instead, they use qualifying language such as.
Relevant Circumstances
- During the due diligence process.
- When any entity is required to share critical data.
- During a merger or acquisition.