55.3 Drafting points—auditing, inspection and record-keeping clausesWhen drafting an auditing, inspection and record-keeping clause, it is important to consider the following:(a) If the party who is to allow inspection refuses, what are the consequences? If the consequences are not clearly specified, a refusal to do so where there is a clear obligation to allow auditing of the licensee’s activities under a licence may entitle the licensor to terminate the licence1.(b) What records can another party examine? Can the party providing the records impose a restriction on what records are to be inspected? Alternatively, will the party who
When drafting an auditing, inspection and record-keeping clause, it is important to consider the following:
If the party who is to allow inspection refuses, what are the consequences? If the consequences are not clearly specified, a refusal to do so where there is a clear obligation to allow auditing of the licensee’s activities under a licence may entitle the licensor to terminate the licence1.
What records can another party examine? Can the party providing the records impose a restriction on what records are to be inspected? Alternatively, will the party who
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