Bona fide error

Bona fide error,

Definition of Bona fide error:

  1. Some types of mergers require specific bona fide rules, such as the reverse triangle merger.

  2. Bona fide error is a legal term referring to an unintentional mistake or oversight that may be corrected promptly to avoid exposure to legal action. Bona fide is from the Latin and used to mean "in good faith.” It is commonly used as a legal term if a party fails to follow the law in attempting to collect a debt. For example, under the Truth in Lending Act, a creditor can avoid legal liability by demonstrating that a violation was unintentional and caused by a bona fide error, including clerical, calculation, computer malfunction or printing error. An error in legal judgment, however, is not ordinarily considered a bona fide error.

  3. Unintentional, honest mistake. Commission of a bona fide error, if corrected immediately upon discovery, normally does not call for a punishment.

Meaning of Bona fide error & Bona fide error Definition