How to initial a document and the consequences of doing so incorrectly – Contracts and Commercial Law

When dealing with legal documents, you may need to sign,
initial, print your name and date them to fulfil legal
requirements. Initialling a document incorrectly could result in
agreeing to terms you do not understand or missing something
important. You want to be confident and understand what you are
agreeing to when writing your initials in a written contract. This article explains what it means
to initial a document, how to initial a document and the
consequences of doing it incorrectly.

What Does It Mean to Initial a Document?

When you write down your initials on a document, you are
essentially acknowledging what is in the document. When drafting a
contract, you write your first, middle (if applicable) and last
name next to specific clauses or changes. In other words, your
initials indicate your intention to be bound by the contract’s
conditions, a key ingredient for validity.

Depending on what you affix your initial to, you can demonstrate
different intentions toward a contract. For example, you might need
to initial each page of a contract or specific terms to demonstrate
you understand them. If you modify your agreement, you may need to
add your initials to verify the change. There is no limit to the
kinds of agreements you can initial. It can vary from a loan
agreement with a bank to a delivery agreement with a supplier.

Initialling adds to the integrity of the document. Additionally,
you may decide to add the date to your initial to authenticate any
variations to a contract. By adding the date, you can prevent
further unauthorised changes from occurring without your knowledge.
Additionally, it is important to note that this provides general
information and applies to new contracts as well as the original
document.

Signing a Document vs. Initialling a Document

When signing a document, you agree to be bound by the entire
agreement, whereas initialling a document means you acknowledge and
understand all or part of a document. It is important to ensure you
sign the document properly to make it legally binding. Likewise,
there could be additional execution requirements or certain
information, depending on your document. For example, you
may need a witness present when you sign a contract.

How Do I Initial a Document Correctly?

There is no right or wrong way to initial a document.
Ultimately, you should initial your document in a way that clearly
demonstrates your agreement with its contents. This means that you
should be precise with your initials.

Here are four things you may consider when initialling a
document:

1. use your full name: your initials should be
   the first letter of your first, middle (if applicable) and last
   name.




2. consistency: how you initial your document
   should be consistent. If you use full stops (e.g. J. D.), use them
   throughout your document. Any inconsistency could raise questions
   about authenticity.




3. location: where you decide to write your
   initials will be important. For example, if you are verifying some
   changes made to one clause on the page, it would make the most
   sense to affix your initials to the space next to the changes. It
   would not be clear what your initials represent if you, say, add
   your initials to the bottom corner of the page.




4. write clearly: your initials should be easy to
   read and distinguishable from other markings on the document.

What are the Consequences of Initialling a Document
Incorrectly?

Initialling a document acknowledges any terms or changes made to a contract. If you initial a
document correctly, it demonstrates your acknowledgement and
agreement to certain aspects of the document. In short, you enhance
the enforceability of any changes to your document.

If you initial a document incorrectly, a court may find your
contract or parts of it invalid and, as a result, will not be
enforceable. You should ensure that your legal documents are
precise. If you make changes to the contract, it could imply that
you do not fully understand or agree with its terms. So, if you
initial your document incorrectly, the credibility of the document
and your intention to be bound by the document will come into
question.

Additionally, if you have a dispute over a legal document,
incorrect initialling may impact how the court interprets the
document. Contracts are formal documents that are meant to be a
representation of what you and another party have agreed to. If
your initials are written on the wrong page or missing a letter,
the legitimacy of the document comes into question. While initials
are not legally binding, they represent your approach to a legal
document – whether you agree and understand what is going on.
However, incorrectly adding or using your initials may call into
question the validity of your document.

Key Takeaways

When you add your initials to a legal document, you authenticate
its contents. While initials are not legally binding, they impact
your contract’s enforceability. If you have to affix your
initials to a legal document, remember that:

• your initials demonstrate you have read, understand and accept
  the important terms;

• your initials can authenticate any changes or variations to a
  contract;




• initialling a document is different to signing a document;




• you should make sure your initials are correct, consistent,
  clearly written and located in a meaningful position on the page;
  and




• if you incorrectly initial a document, the enforceability of
  the document will be in question.