Above is section 6.10 of A Manual of Style for Contract Drafting. Note the first sentence:
Make sure all instances of a defined term use initial capitals. If one doesn’t, that can cause confusion—was it a mistake, or did the drafter intend that instance of the word or phrase to express a different meaning?
I now propose an exception to that rule: It’s OK to use without initial capitals a word or phrase that is otherwise used as a defined term if the defined term is a common noun used as a defined term for a party name, for example Company or Lender.
This exception reflects that (1) it’s routinely commonplace, even unavoidable, for such dual use to occur in a contract and (2) such dual use wouldn’t create confusion.
